ED searches Brightcom Group offices, CMD residence; finds violation of FEMA Act
Brightcom Group Ltd, as well as at the residences of Chairman and Managing Director M. Suresh Reddy and Chief Financial Officer S.L.N Raju in Hyderabad.
The searches were conducted as part of the investigation conducted by the Securities and Exchange Board of India (Sebi) regarding impairment of assets worth Rs 868 crore by the company through its international subsidiaries.
The inquiry by the ED revealed that Brightcom Group violated provisions of Foreign Exchange Management Act (FEMA).
“It was revealed that Brightcom itself financed the preferential issues by round-tripping funds through subsidiaries and conduit entities; that Brightcom falsely claimed to have received full payment for preferential shares/warrants by providing ‘forged and fabricated bank statements’ to SEBI,” the ED said.
Further, more than Rs 300 crore advanced as loans to subsidiaries were partly siphoned off or remained unaccounted.
The ED also conducted searches at the residence of the company’s statutory auditors P.
