Rs 3.65 crore Lisbon flat, Rs 31 lakh cash: ED probes Jabalpur bizman’s hidden foreign assets

BHOPAL: The Enforcement Directorate (ED) has unearthed an alleged case of undisclosed foreign assets after detecting the purchase of a residential flat in Lisbon, Portugal, by a Jabalpur-based businessman, following searches that led to seizure of Rs 31 lakh in unaccounted cash.

The ED’s Bhopal Zonal Office conducted search and seizure operations on March 19 at three premises linked to M/s Rajul Group and its partner Priyank Mehta under provisions of the Foreign Exchange Management Act (FEMA), 1999.

The investigation was initiated based on inputs from the Income Tax Department, which during a search in September 2023 found evidence indicating possession of foreign assets by Mehta.

According to officials, Mehta had purchased a residential flat in Lisbon for Euro 5,10,000 and was earning rental income from the property. However, the asset and income were allegedly not disclosed in the Foreign Assets Schedule of his Income Tax Returns.

ED investigations revealed that: USD 5,48,000 was remitted to the US under the Liberalised Remittance Scheme (LRS) and later routed to Portugal.

Euro 4,20,998 (approx. Rs 3.65 crore) was transferred to Portugal and used to purchase the flat.

Around Rs 2.1 crore is currently lying in a Lisbon-based bank account

During the raids, ED seized unaccounted cash worth Rs 31 lakh from Mehta’s premises.

Officials are examining whether the remittances violated FEMA provisions and involved misuse of the LRS route to park funds abroad. Further investigation is underway.