Officals of the Enforcement Directorate raided a medical-cum-foreign currency exchange shop in Sector 15 and seized more than Rs 1 crore, most of it foreign currency and all unaccounted, on Thursday evening. ED sources claimed this was the biggest-ever seizure by the agency in the city.
Sudarshan Kumar, a resident of Sector 38 and owner of Chaudhary Medicos and Chaudhary Forex Pvt Ltd, has been booked under the Foreign Exchange Management Act (FEMA). He has reportedly “admitted” involvement in illegal sale and purchase of foreign currency.
For contravention of any provision or regulation under the FEMA Act, the maximum penalty is three times the money involved.
The money seized from Kumar allegedly includes foreign currency of 16 different countries.
Sources said a team of ED officials from the agency’s zonal office in the city, led by an assistant director, swooped down on the shop in Sector 15-D on Thursday evening. A search of the premises yielded Rs 1.05 crore, of which Rs 75 lakh was in foreign currency and Rs 30 lakh in Indian currency. The foreign currency included US dollars, pounds, euros, Swiss francs, dinars and currency from various other countries. Some documents were also seized.
“We had received tip-offs about alleged illegal activities being carried out by Kumar after which we started a preliminary investigation. We had been working on the case for the last several months,” said an ED official.
Kumar was questioned at length after which he reportedly confessed his involvement in illegal sale and purchase of foreign money. “He had been doing this for the last several years. He got himself a licence for money exchange, but only about 20 per cent of his business was conducted through legal channels,” said an official.
Further investigation is on to find if any other person was also involved.
Kumar could not be reached for comment.