The Enforcement Directorate (ED) has launched a major probe into the BC Jindal Group over alleged violations of the Foreign Exchange Management Act (FEMA).
The financial crime agency carried out search operations on September 18 and 19 at 13 locations linked to the group and its associates in Delhi-NCR and Hyderabad.
The crackdown targets suspected irregularities involving group entities including Jindal India Thermal Power Ltd (JITPL), Jindal India Powertech Ltd (JIPL), and Jindal Poly Films Ltd (JPFL). The ED is investigating alleged round-tripping of funds, diversion of investor money, and questionable overseas investments.
Alleged Diversion of Investor Funds
Officials allege that companies owned by Shyam Sundar Jindal, his wife Shubhdra Jindal, and son Bhavesh Jindal remitted around ₹505.14 crore to their Dubai-based entity, Topaz Enterprise DMCC. These funds were then reportedly used to acquire Garnet Enterprise DMCC, another offshore company, under the pretext of overseas direct investment.
The financial trail, as per investigators, dates back to 2013–2017, when JPFL invested ₹703.79 crore into JIPL, which subsequently channelled the money into JITPL’s Odisha coal-based power project. Instead of recovering this large investment, JPFL allegedly wrote it off in FY 2018–19 and sold the stake to promoter-linked companies at a steep loss — a move the ED believes was aimed at siphoning off public investors’ money.
In May 2024, JIPL redeemed preferential shares worth ₹853.72 crore from JITPL. However, instead of repaying JPFL, a major portion — ₹505.14 crore — was allegedly diverted to Topaz Enterprise DMCC, controlled by the Jindal family, for acquiring Garnet Enterprise DMCC.
Manipulated Valuations & Overseas Entities
During the searches, the ED claims to have recovered evidence suggesting that valuation reports were manipulated to justify inflated remittances abroad. Investigators further suspect that funds were routed through a complex web of shell entities across multiple jurisdictions including the Netherlands, USA, Belgium, Italy, Luxembourg, Singapore, China, UAE, and Germany. These overseas ventures, officials say, were ultimately beneficially owned by the Jindal family.
Promoter Absent During Raids
Sources also confirmed that Shyam Sundar Jindal was in Hong Kong during the raids and has not yet appeared before investigators. The ED has indicated that he is expected to join the probe.
Seizures and Ongoing Probe
The agency stated that several incriminating documents related to overseas acquisitions and financial control were seized during the searches. “The investigation is ongoing to trace the end-use of remitted funds and to establish the role of various group companies and their promoters,” the ED noted.
The BC Jindal Group, a diversified conglomerate with business interests spanning power, packaging films, and steel, has not yet issued an official statement in response to the ED’s action.
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