The Enforcement Directorate has unearthed a massive forex (foreign exchange) scam of over Rs 700 crore involving Capstone Forex Private Limited, a Maharashtra-based firm. Capstone Forex came under ED’s scanner during an investigation into Edelweiss Financial Services Limited whose chairman Rashesh Shah was recently grilled by the agency.
The financial probe agency claims that Capstone Forex bought forex on fudged, forged and fake air tickets and passports. ED’s investigation has revealed that Capstone had received more than Rs 700 crore in its accounts from various shell companies.
An investigation by the ED also reveals that many of the shell companies transferred funds to various big corporates and reputed companies.
Corporates that have come under the radar of ED investigation include CG Power Solutions, Indianapolls Hospitality (Jay Mehta Group), Consultshah Financial Services, Eros International Media, Jain Energy (Jain Irrigation Group), Navarkar Builders, Next Gen Films, Swatantryaveer VD Savarkar Multistate Cooperative Credit Society.
Jay Mehta is the husband of Bollywood actor Juhi Chawla.
Sources say that during questioning, most companies failed to justify the reason behind the transfer of funds to Capstone Forex.
The sudden spurt in the trend of turnover in 2017-2018 compared to previous years caused interest in examining the business practices and the source of revenue of the said company. On examining bank account statement of the said FFMC, it was found that the said company has received hundreds of crores of rupees from various business entities, firms and companies during the period of 2017 -2019, read the ED documents.
According to ED, the company submitted copies of passports and air ticket to show the proof of the customers to whom they have sold the foreign exchange. On checking a few of those air tickets, it was found that the said tickets were forged and fake. This led to suspicion that the foreign exchange sold by the said company to the said individual customers as indicated by them on their records. Capstone Forex Private Limited has been purchasing foreign exchange and foreign currencies from the other AD banks, other FFMCs by using the funds received by them in their bank accounts, added the ED documents.
The ED is expected to summon the suspects involved in the scam for questioning.