The Enforcement Directorate (ED) late Thursday night conducted searches at nine premises of Urban Infrastructure Venture Capital linked to businessman Anand Jain for Foreign Exchange Management Act (FEMA) violations. ED is probing $300 million from Mauritius-based firms diverted to Urban Infrastructure Venture Capital.
The diverted funds were allegedly further invested into various companies and Jain received Rs 400 crore from the funds which were not reflected into the accounts of the companies controlled by the businessman.
Jain issues clarification on ED searches
In response to the ED searches, Jain has issues a clarification note. In this note, it is mentioned that Jain himself or any of his personal companies are not involved in any transaction with any Mauritius entity and that Jai Corp Ltd., a publicly listed company through Urban Infrastructure Venture Capital Limited (UIVCL), is acting only as an advisor to a Mauritius based Fund.
Furthermore, the statement reads that the said Fund had invested around Rs 950 crore directly in various companies under automatic FDI routes and none of these amounts have come to UIVCL. Clarifying on this fund further, it said that the fees received by UIVCL from the Mauritius based Fund had been in the range of Rs 8-10 crore per annum from 2007-08 to 2019-20 and the amount of Rs 400 crore as reported by the ED is without any basis.
Towards the end of the clarification statement it was alleged that "motivated misinformation is being spread by disgruntled elements with ulterior motives".
The investigations under FEMA against Jain and other related entities launched by ED cited suspicions over the diverted funds from Mauritius. Jain is the chairman of Navi Mumbai SEZ Private Limited, Mumbai SEZ Limited, Reliance Haryana SEZ Limited and Urban Infrastructure Venture Capital Limited (UIVCL).
Jain is also the director of Jai Corp and is closely associated with the Reliance Group. He was a top executive with the Reliance Group and worked closely with various Reliance ventures at the top level for over three decades.
Who is Anand Jain?
Anand Jain is an Indian businessman who has served as the Chairman of Jai Corp Limited since 2005. He has over 30 years of experience in various businesses, with an expertise in real estate, finance, and capital markets. Jain is a graduate of the University of Mumbai and holds an MBA from the Indian Institute of Management, Ahmedabad. He is also a member of the Young Presidents' Organization (YPO).
Jain is a well-respected figure in the Indian business community and has been recognized for his contributions to the industry. In 2007, he was named one of the "Top 40 Most Powerful Indians" by Forbes magazine. He is also a member of the board of directors of several companies, including Reliance Industries Limited, Indian Petro Chemicals Ltd, and Rewas Port Limited. He is a trustee of the Sir HN Reliance Foundation Hospital and Research Centre.
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