FEMA Violation Case: Edelweiss Group Chairman Rashesh Shah Appears Before Enforcement Directorate
Rashesh Shah, chairman and chief executive officer of the Edelweiss Group. (Photo: BloombergQuint)

FEMA Violation Case: Edelweiss Group Chairman Rashesh Shah Appears Before Enforcement Directorate

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Financial services company Edelweiss Group Chairman Rashesh Shah on Wednesday appeared before Enforcement Directorate officials for questioning with regard to a case of Foreign Exchange Management Act violation.

Shah was summoned for the second time by ED after failing to appear last week.

The businessman arrived at ED office in south Mumbai's Fort area around noon. Details on the information that will be sought from him were not immediately available. Shah, in a statement on Sunday, had denied any wrongdoing in the case and added that Edelweiss has no relationship with Capstone Forex, which is being investigated by the ED.

He had said that his relationship with Sanjay Nathalal Shah, whose role is being investigated in the case, is limited to the chartered accountant being an independent director in multiple companies in Edelweiss Group.

Also read: Edelweiss’ Shah Reiterates That There Were No Dealings With Capstone Forex

He had promised to fully cooperate in the investigation started by ED.

Informing shareholders about the development, Shah had said, "I am writing to you directly to assure you that Edelweiss has no relationship with Capstone Forex and all allegations of FEMA violations are false."

The chairman had also said he was unable to go in person to ED and had authorised senior representatives to be present with the requisite information. "Needless to say, if in the future any assistance or support to the investigation is requested from us, we will cooperate fully," he added.

He had also accused media of sensational reporting on "false allegations" and warned of taking appropriate legal action against a media group for reporting on the case.

Shares of Edelweiss Financial Services Ltd. on Wednesday closed 1.59 percent higher at Rs 108.50 on the BSE.

Also read: Enforcement Directorate Summons: Edelweiss Says No Dealings With Capstone Forex

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