New Delhi: Enforcement Directorate is set to begin penal action for alleged foreign exchange dealings and money laundering in award of contracts in the 2010 Commonwealth Games, beginning with a notice for alleged forex violation to the tune of Rs 185 crore.
The Directorate, according to sources, is set to issue a series of violation notices for amount which could total to Rs 500 crore in the CWG contracts as the agency has recently obtained information from the RBI against various contracting firms and agencies for contravention of the Foreign Exchange Management Act (FEMA).
According to sources, the ED is set to issue FEMA notices to a Singapore-based firm Pico Event Marketing India Private Limited (PEMI) and its three Directors for allegedly "blatantly flouting the mandatory regulatory framework relating to foreign exchange investments in India" involving an amount of Rs 185 crore.
When contacted, ED Deputy Director and Investigating Officer (IO) of the CWG probe Rajeshwar Singh refused to comment on the status of the probe.
The ED has already filed its complaint (equivalent of a charge sheet) in this regard with the adjudicating authority of Foreign Exchange Act in the country.
The ED, according to its charge sheet, has found that PEMI was "incorporated solely for the purpose of getting overlays contract from Organising Committee of CWG with 100 per cent foreign directorship."