ED Initiates Search Proceedings Under FEMA

The Enforcement Directorate has conducted search proceedings in connection with an investigation involving Kalanee Impex Private Limited and its active director, Dharmesh Sangani. According to an official statement, the action was carried out on Thursday under the provisions of the Foreign Exchange Management Act, 1999.

The investigation relates to suspected foreign exchange irregularities, including undisclosed overseas assets, foreign bank accounts and cross-border financial transactions.

Overseas Bank Accounts Under Examination

The agency is reportedly examining allegations that Sangani operated bank accounts in Canada, the United States and the United Arab Emirates. His reported business interests in film production and association with the Shekhar Suman Film Academy are also being examined as part of the wider inquiry.

Officials are investigating reports that he may have been associated with the academy as a co-founder. These matters remain under investigation, and the available information does not indicate any final adjudication or determination of liability.

Delay in Repatriation of Export Proceeds

During the searches, the ED reportedly found that certain funds payable to the Indian company had not been brought into India despite the passage of a substantial period.

The agency stated that export proceeds due from some overseas buyers remained unrealised. It also noted that no extension had been obtained from the authorised dealer bank for the delayed receipt of these funds.

According to the official findings, the company had not maintained documented evidence of recovery measures undertaken to collect the outstanding export payments.

Payments Received From Third-Party Entities

The investigation also identified instances where export payments were allegedly received from third-party entities instead of the consignee or overseas buyer mentioned in the relevant export invoices and shipping bills.

Such transactions are being examined from the perspective of FEMA compliance, export proceeds realisation requirements, banking documentation and the legitimacy of cross-border payment arrangements.

Regulatory and Compliance Significance

Under India’s foreign exchange framework, exporters are generally required to realise and repatriate export proceeds within the prescribed period or obtain an approved extension through their authorised dealer bank.

Failure to receive export proceeds within the applicable timeline, absence of documented recovery efforts and receipt of payments from unrelated third parties may attract regulatory scrutiny. The ED’s proceedings are investigative in nature, and further action will depend on the evidence collected and the outcome of the FEMA inquiry. CA Sansaar