The Enforcement Directorate (ED) recently carried out simultaneous raids at 13 properties connected to the BC Jindal group in both Delhi and Hyderabad. These operations are part of an ongoing investigation under the Foreign Exchange Management Act (FEMA), as announced by the agency on Wednesday, September 24, 2025. Authorities suspect that significant funds originating from India were illegally channeled into the group’s offshore entities, directly contravening FEMA regulations.
The searches are specifically targeting alleged FEMA infringements by key group entities, including Jindal India Thermal Power Ltd. (JITPL), Jindal India Powertech Ltd. (JIPL), and Jindal Poly Films Ltd. (JPFL). The ED’s allegations involve questionable overseas investments, the parking of funds in their own foreign subsidiaries, and sophisticated schemes designed to ’round-trip’ money.
You might also be interested in: Enforcement Directorate conducts searches against B.C. Jindal Group of Companies
According to the agency, the investigation was triggered by specific intelligence suggesting that the group, beneficially owned by Shyam Sundar Jindal, his wife Shubhdra Jindal, and son Bhavesh Jindal, remitted ₹505.14 crore to their Dubai-based overseas entity, Topaz Enterprise DMCC. This transaction was ostensibly for acquiring shares in another foreign entity, Garnet Enterprise DMCC (GED), under the guise of an Overseas Direct Investment (ODI).
Questionable Investment Practices Uncovered
Further scrutiny revealed that between 2013 and 2017, JPFL invested a substantial ₹703.79 crore in JIPL, which was subsequently funneled into JITPL for the development of a coal-based thermal power plant in Odisha. However, in a questionable move during 2018-19, JPFL allegedly wrote off these investments and sold them at a considerable loss to its own promoters and associated group companies. The ED views this as a potential siphoning off of public investors’ money, especially concerning given JPFL’s status as a listed entity.
Highlighting multiple suspected violations, the ED stated its belief that the BC Jindal group has been deliberately rerouting its own funds outside India under the pretext of ODI. Data obtained by the agency indicates that Shyam Sundar Jindal and his associated entities possess a network of overseas companies located in countries such as the Netherlands, USA, Belgium, Italy, Luxembourg, Singapore, China, United Arab Emirates, and Germany. The ED suspects that funds from India have been illegally placed in these foreign entities, in clear violation of FEMA provisions.