The Enforcement Directorate (ED) has launched an extensive investigation into alleged violations of the Foreign Exchange Management Act (FEMA) involving suspicious transactions worth nearly ₹900 crore, reportedly linked to Ranchi-based chartered accountant Naresh Kumar Kejriwal. Acting under Section 37 of FEMA, the agency conducted multi-location searches to trace undisclosed foreign assets, suspected shell entities, and complex cross-border fund flows. The probe follows inputs from tax authorities and focuses on uncovering the money trail, identifying beneficiaries, and assessing potential breaches of foreign exchange and anti-money-laundering laws.
Who is Naresh Kumar Kejriwal?
He is a Ranchi-based chartered accountant who has come under the Enforcement Directorate’s scrutiny.
Officials suspect his involvement in large-scale illicit foreign exchange violations and hawala operations through complex offshore structures.
Why has the ED taken action?
The investigation comes under Section 37 of the Foreign Exchange Management Act (FEMA) — which deals with powers of search and seizure in cases of foreign exchange violations.
ED action was prompted by intelligence and a detailed report from the Income Tax Department suggesting that Kejriwal may have controlled a network of undisclosed shell companies abroad and was involved in unauthorised movement of funds.
What the ED alleges
🧾 Offshore shell firms and unexplained funds
Kejriwal is allegedly linked to undisclosed shell companies registered in countries such as the UAE, Nigeria, and the USA but operated from India.
These entities are believed to have accumulated over ₹900 crore in unexplained reserves — money that was not disclosed in any statutory filings — which is a major compliance violation under Indian law.
💱 Illegal fund flows
Investigators suspect that around ₹1,500 crore may have been routed back into India from these foreign shell entities through bogus telegraphic transfers and layered transactions.
These kinds of fund flows are often associated with hawala networks or money-laundering schemes designed to bypass formal banking and regulatory oversight.
📂 Unreported and suspicious transactions
The alleged foreign assets and transactions were never declared in statutory filings — a serious breach of regulatory norms under FEMA and tax laws.
The ED action is focused on obtaining documentary and digital evidence to trace the money trail, uncover the true scale of the network, and identify any additional actors involved.
Where are the searches happening?
ED conducted multi-city searches simultaneously, not just in Ranchi but also at premises connected to family members and close associates in Mumbai and Surat.
Around 12 locations have been searched so far, including residences and business sites linked to Kejriwal and his network.
What was seized so far?
During the searches, officials reportedly recovered:
₹6.5 million (₹65 lakh) in cash
Gold and silver coins worth approximately ₹5.5 million (₹55 lakh)
Investigators also collected digital devices, financial records, and documentary evidence which could reveal fund flows and offshore connections.
What happens next?
The ED will now examine the seized materials, including bookkeeping, communications, bank records, and digital trails.
Based on what emerges, the agency could potentially:
File formal charges under FEMA or Prevention of Money Laundering Act (PMLA)
Prosecute for tax evasion, unreported foreign assets, and hawala transactions
Initiate attachment of assets under Indian law
Why this matters
Investigations like this signal enhanced enforcement focus not just on domestic tax evasion but on cross-border transactions, offshore shells, and illicit fund flows — areas of growing regulatory concern in India.
Action under FEMA Section 37 highlights the government’s effort to clamp down on undeclared foreign exchange operations and illegal money movement through informal systems like hawala.