ED grills Edelweiss CEO for 5 hours in Rs 740 crore forex case

MUMBAI: Enforcement Directorate (ED) questioned Rashesh Shah, chairman and CEO of Edelweiss Financial Services Ltd, for five hours on Wednesday at its Ballard Estate office. Rashesh was summoned to record his statement in connection with a Rs 740-crore forex violation by a Mira Road company, Capstone Forex. ED is investigating Capstone under Foreign Exchange Management Act (FEMA).
Sources said Capstone is being investigated for illegal outward remittances using forged KYC documents. ED officials said they could not share details of the investigation as there were doubts they were clarifying with Rashesh, for clarity on his company's connection with Capstone Forex.
ED is also probing Sanjay Shah, who was an independent director at Edelweiss group companies, for financial transactions with Capstone Forex. Sanjay had resigned from the group on Tuesday. ED is trying to ascertain if Sanjay executed business transactions with Capstone Forex in his individual capacity or in the interest of Edelweiss.
"ED also told Rashesh to submit some documents. After examining them, ED will decide further action," said a source.
Rashesh arrived at the office around noon and left at 5pm but refused to speak to media. Edelweiss did not issue a statement on Wednesday but Rashesh earlier told media neither he nor his group had any connection with Capstone. ED had earlier issued summons to Rashesh on November 3.