Confirming the development, an ED official said Shah was earlier called to join the investigation on Thursday (January 9), under the Foreign Exchange Management Act (FEMA). However, he is learnt to have sought some time seeking personal engagement. The ED now issued fresh summons to him.
Sources said Shah has been called to produce certain documents, including his companies’ books of accounts along with details of his companies
in India and abroad.
The agency is learnt to be probing whether there is any direct or indirect links of the Edelweiss chief with a Mumbai-based firm Capstone Forex. Sanjay Nathalal Shah, who is working with Edelweiss Finvest, is a ‘person of interest’ and has already been asked to give his statement on buying huge amount of foreign exchange through several entities, a source said. The information about the case first surfaced after a whistle-blower wrote a letter to the government agencies.
In a media statement, Edelweiss said “We have received a communication from the Enforcement Directorate
to appear and provide information about Edelweiss Group Companies
dealings with a company called Capstone Forex.. We would like to state that none of our companies
have any transaction with this company — Capstone Forex.”
“We further deny the wild baseless allegations contained in the news
items which are apparently attributed to unidentified sources. We are in fact shocked at the spread of unauthenticated allegations and inference being drawn there from,” it added.
ED, however, is learnt to have come across some shell firms, which were allegedly created for these activities. Shah’s personal appearance was required as the issue is serious in nature, said the official.
of the ED summons hit Edelweiss Financial Services shares as it fell by 10 per cent on Friday to close at Rs 106 a share. The company has lost Rs 1,046 crore of market capitalisation today and has already lost 40.6 per cent or Rs 6,780 crore of market value in the last one year.