The Enforcement Directorate (ED) has launched crackdown on money changers in Delhi and Uttarakhand,targeting areas like Rishikesh and Dehradun . Allegations point to violations of Foreign Exchange Management Act (FEMA). The probe is based on reports that licensed money changers and their partners were involved in unauthorized currency deals and possible 'hawala' transactions.
Searches zeroed in on several firms: Ganga Forex Private Limited, JPJN Financial Services Private Limited, Alpine Forex Private Limited,and Jai Jeen Forex Private Limited. ED also looked at related businesses like JPJN Gems Unit and Vintage India, plus the homes of key figures in these companies.
These money changers allegedly traded foreign currency outside legal limits, ignoring essential Know Your Customer (KYC) rules and paperwork. ED seized large amounts of currency: about ₹54.58 lakh in foreign money and ₹33.98 lakh in unaccounted Indian cash, along with documents and digital devices.
The investigation uncovered a troubling web of entities and people involved in international 'hawala' operations. The ED found mismatches between physical foreign currency stock and what's on the books, hinting that these entities didn't keep proper accounts or stock records .
“Unaccounted cash and foreign currency suggest unauthorized transactions happening outside regular accounting systems,breaking rules,” the agency stated. It stressed that missing purchase logs, customer info,KYC docs, and encashment certificates at franchise locations are serious red flags.
The ED explained that franchisees can only buy foreign currency for their franchisers and must keep detailed transaction records. The agency continues to dig into the financial trail linked to these operations.
This sweep on money changers fits into the ED's wider push to enforce FEMA compliance and stamp out illegal financial activities in India. As the probe moves forward, the agency aims to fully expose the alleged violations and hold those responsible to account.
