The Enforcement Directorate has served a show-cause notice to Angelique International Limited for the transfer of funds to certain African countries allegedly in violation of the Foreign Exchange Management Act (FEMA).
The allegation on Angelique International Limited
The alleged violation of FEMA involved “improper” payments to the tune of 1.06 crore dollars (70.90 crore) in African currencies to certain individuals.
The ED probe found that the company had made the payments on account of its overseas projects by “padding up” the project cost and disguising the same as “business development charges”, “site survey”, “consultancy” and other pretexts.
The Directorate General of Economic Enforcement is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance. It comprises officers of the Indian Revenue Service, Indian Police Service and the Indian Administrative Service.
The origin of this Directorate goes back to 1 May 1956, when an ‘Enforcement Unit’ was formed, in Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947. In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.
The prime objective of the Enforcement Directorate is the enforcement of two key Actsof the Government of India namely, the Foreign Exchange Management Act 1999 (FEMA) and the Prevention of Money Laundering Act 2002 (PMLA)