ED raided 620 entities over FEMA violations post-note ban

The raids carried out between November 2016 and September 2017, were to check the violation of foreign exchange rules and money laundering, the agency said in a report.

The Enforcement Directorate (ED) conducted searches in 620 firms after the government announced demonetisation last year. 
 
The raids carried out between November 2016 and September 2017, were to check the violation of foreign exchange rules and money laundering, the agency said in a report on Thursday.
 
ED had issued 597 showcause notices, which involved suspected violations of the Foreign Exchange Management Act (FEMA) to the tune of Rs 4,600 crore. 
 
It also seized Rs 5,335 crore of assets for suspected violations of the Prevention of Money Laundering Act (PMLA).
 
As per report, financial institutions had 48 per cent of the FEMA and PMLA cases, followed by real estate (35 per cent) and gold or precious metal (7 per cent). 
 
The Government of India, on November 8 last year, announced scrapping of Rs 500 and Rs 1,000 banknotes. 
 
The move was aimed at reining in black money, fake notes and terror finance networks.
 
Source: LiveMint

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