The ED launched multi-state raids in a FEMA probe targeting Ranchi-based CA Naresh Kumar Kejriwal. He is suspected of running a hawala and fund diversion network with offshore shell firms, allegedly routing over Rs 1,500 crore into India.
The Enforcement Directorate (ED) on Tuesday launched extensive searches across multiple locations in Jharkhand, Maharashtra, and Gujarat in connection with an ongoing probe under the Foreign Exchange Management Act (FEMA), officials said. The searches began early Tuesday following actionable intelligence and were carried out in coordination with state police.
Ranchi-based CA Under Scanner
“The action is being carried out under Section 37 of FEMA and is primarily focused on Ranchi-based chartered accountant Naresh Kumar Kejriwal, who is suspected to be a key figure in an illicit hawala and foreign fund diversion network. Searches are simultaneously underway at his residence and premises linked to his family members and close associates in Ranchi, Mumbai, and Surat,” said the officials privy to the development.
Probe Uncovers Offshore Shell Firms
According to the senior officials familiar with the investigation, the ED’s action was prompted by a detailed report shared by the Income Tax Department. “The findings reportedly revealed that Kejriwal has financial control over a network of undisclosed offshore shell firms operating out of the United Arab Emirates, Nigeria, and the United States. Officials stated that despite being incorporated abroad, these shell entities were allegedly being managed from India and lacked legitimate commercial activity.”
Over Rs 1,500 Crore Allegedly Laundered
Preliminary scrutiny suggests that these offshore firms collectively amassed unexplained financial reserves exceeding Rs 900 crore, they said. Investigators believe that a significant portion of this amount was illegally funnelled back into India through fraudulent telegraphic transfers.
Officials estimate that nearly Rs 1,500 crore may have been routed into domestic accounts through forged documentation, layered corporate channels, and sham import-export declarations. The agencies suspect that these transactions were part of a larger organised hawala network facilitating tax evasion, foreign exchange violations, and possible money laundering.
Violation of Disclosure Norms
Authorities also highlighted that these foreign holdings and transactions were never disclosed in statutory filings, a mandatory compliance requirement under Indian financial and taxation laws.
Investigation Focuses on Evidence Trail
During the ongoing searches, the ED is focusing on retrieving key documentary evidence, digital records, transaction trails, and communication logs that may establish the scale of cross-border violations and identify additional beneficiaries or conspirators. Officials noted that uncovering the offshore fund flow pattern is essential to substantiate the suspected misuse of foreign entities as vehicles for large-scale financial layering and concealment of proceeds.
The operation is expected to continue over the next few days as investigators examine seized materials and connect financial links across jurisdictions. Further action will depend on the outcome of the scrutiny and digital forensic analysis, the officials added.
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