The Enforcement Directorate (ED), Ahmedabad zonal office, has issued showcause notices to city-based firm Gini Money Changers for Rs 1.27 crore worth illegal sale of foreign exchange against cash payment through old demonetised currency notes of Rs.500 and Rs.1000 in back dates.
ED officials said that the notices were sent on March 27 for violation of provisions under sections 10 (4) and 10 (5) of Foreign Exchange Management Act, 1999 (FEMA).
Officials said that based on intelligence inputs, it had searched the office of the company in November last year, in which Rs.10.23 lakh Indian currency and unaccounted foreign currencies equivalent to over Rs. 24.43 lakh and documents were seized.
Officials alleged that the firm was “illegally selling foreign exchange against cash payment by taking old demonetised currency notes in back date that is prior to November 8, 2016, whereas the actual transactions took place after that.”
According to officials, an amount of Rs 92.87 lakh was deposited in various bank accounts by the firm. “The source of these funds was found to be illegal sale of foreign currency,” an officials said.
They said that the modus operandi of the firm was “to make the fake sale documents in previous dates so that the deposited money can be substantiated as genuine sale along with the cash deposited in the banks.”