Sahara under ED scanner

New Delhi, Jun 2 (PTI) The Sahara group has come under
the scanner of the Enforcement Directorate for alleged
violation of foreign exchange rules to the tune of crores
of rupees in connection with the purchase of a hotel in UK.
Sources said the ED has officially communicated to the
RBI that it should obtain further information after the
Directorate questioned officials of two Mumbai-based banks--
ICICI and Axis-- which were involved in transferring of funds
to UK through Mauritius in this connection last year.
The deal in question is when the Sahara group moved
crores of rupees for purchasing a hotel in UK.
Sahara, however, dismissed the charges.
"Both the banks, ICICI Bank as well as Axis Bank had
done their complete due diligence while transferring the funds
overseas, which were used to invest in the hospitality sector
overseas.
"At every stage, there has not been a single incident
of violation of any regulatory or legal requirement. The flow
of funds are very much in accordance of the objects of the
respective companies and we have been very open right from the
beginning about the entire transaction and there is nothing to
hide from the authorities concerned," Sahara spokesperson
Abijit Sarkar said.
ED suspets "contravention" of the Foreign Exchange
Managememt Act (FEMA) in this deal as the funds were allegedly
routed through Mauritius-- a tax haven.
Sources also said the Directorate would now issue
notices to the Sahara group under FEMA laws.