Dikhyaa Mohanty 
During searches at many sites connected to M/s Z Estates Private Limited (ZEPL) and other businesses, the Enforcement Directorate (ED), Bhubaneswar zonal office, discovered unaccounted cash of Rs 1.39 crore and other incriminating papers about overseas investments, the ED said. Under the terms of the Foreign Exchange Management Act (FEMA), 1999, the ED detectives conducted search operations on November 22 at nine locations in Odisha, Delhi, and Gurugram. The offices and homes of M/s ZEPL’s directors and other important individuals, as well as its affiliated company M/s Z Harshpriya, were among the sites searched.
“ED initiated an investigation against M/s ZEPL for a violation under the FEMA,1999 in respect of receiving Foreign Direct Investment from abroad by way of round-tripping of funds through foreign entities formed and located abroad. The search operation was conducted on the basis of suspected violations in receipt of foreign investments by way of issuing equity shares and premium shares to foreign entities in lieu of such investments, ED is suspecting probable hawala transactions and round tripping of funds to M/s ZEPL from abroad through various foreign entities informed the press statement” the ED further added.
During the searches, ED officers found a total of Rs 1.39 crore in unaccounted cash and other incriminating papers related to foreign investment received by M/s ZEPL.
Z Estates’ managing director, Tapan Kumar Mohanty, previously told reporters that the business had received foreign investment in 2007 and that it complied with all applicable laws and regulations, including those set down by the RBI and the FEMA (Foreign Exchange Management Act). He asserted that the business complied with all laws when it received the foreign investment. It is important to note that in September of last year, the Odisha Police’s Economic Offenses Wing searched a number of locations connected to Z Estates Private Limited and its directors in relation to claims of irregularities in certain construction projects at Z One Apartments in the Raghunathpur neighborhood of Bhubaneswar.
