The Enforcement Directorate (ED) on Tuesday said it has attached two residential flats worth Rs 2.83 crore at Borivali in Mumbai in the name of one Bhupesh Agarwal and his wife under the provisions of Section 37A of the Foreign Exchange Management Act (FEMA).
“An investigation was launched based on input that one Bhupesh Agarwal had incorporated and used several dummy entities for remitting funds to Dubai-based companies without availing any services as previously declared by him to authorised dealer banks. The input received was verified and thereafter, ED conducted searches at the premises of Bhupesh Agarwal and his linked entities,” an official said.
The ED said that three companies — Lunarart Media Entertainment Pvt. Ltd., Cineblossom Films & Productions Pvt. Ltd. and Rocster Entertainment LLP controlled by Bhupesh Agarwal remitted Rs 52.83 crore to Dubai-based entities on the pretext of availing audio-video services.
However, no such services were actually availed by the above entities.
Further, during the investigation, the directors of the said companies along with the Chartered Accountant/Company Secretary who incorporated the stated companies admitted to having formed them on instructions of Bhupesh Agarwal.
Accordingly, all the payments remitted outside India, in the name of said companies, were arranged by Bhupesh Agarwal.
2023071841319
