
The Enforcement Directorate (ED) has conducted searches at the offices of India Cements Ltd., a leading cement manufacturer based in Chennai. This action is part of an investigation into foreign exchange violations, according to official sources on Thursday.
Background of the Searches
The searches were initiated on Wednesday at two office locations of India Cements in Chennai and one in Delhi. These actions are taken under the provisions of the Foreign Exchange Management Act (FEMA), as mentioned by the sources.
Ownership and Key Figure
Noted industrialist N Srinivasan, who is the owner of India Cements, is a prominent figure associated with the company. Srinivasan is also known for being the former president of the Board of Control for Cricket in India (BCCI). India Cements owns the Chennai Super Kings (CSK) T-20 cricket team.
Company’s Response
India Cements, in a regulatory filing, stated that it is cooperating with the federal probe agency. The company clarified that the Enforcement Directorate officials visited their corporate office in Chennai on January 31, 2024, and February 1, 2024, to investigate any irregularities related to FEMA. The company assured that it has provided and is willing to provide all necessary clarifications and documents. India Cements does not anticipate any significant impact on the company due to the ongoing investigation.
Probe Details
The investigation focuses on India Cements’ associate company, India Cements Capital Ltd (ICCL). It involves the transfer of funds abroad amounting to approximately Rs 550 crore. The Enforcement Directorate is examining the roles of certain individuals, including alleged dubious agents and directors associated with the company.
About India Cements
Established in 1946, India Cements has been a key player in the cement industry. While cement remains its primary focus, the company has diversified into related fields such as shipping, captive power, and coal mining, as mentioned on its website. ICCL, the associate company under investigation, is involved in foreign exchange, money transfer, travel insurance, and remittances.