The Enforcement Directorate (ED) has conducted searches at six locations in Bengaluru as part of an investigation into alleged unauthorised cross-border money transfers exceeding Rs 2,500 crore through virtual digital assets (VDAs), according to an official statement issued by the agency on Friday, reported The New Indian Express.
The searches, carried out on June 17 under Section 37 of the Foreign Exchange Management Act (FEMA), covered premises linked to five companies — Transak Technology India Pvt. Ltd., Carretx Technologies Pvt. Ltd., Mokshagna Technologies Pvt. Ltd., Buyhatke Internet Pvt. Ltd. and Abhibha Technologies Pvt. Ltd.
ALSO READ | ED Attaches Rs 500-Crore Assets In Raheja Case, Uncovers Large-Scale Funds Diversion
The firms operated platforms and brands including Transak, Carret, Xpat (formerly Remit2Any), Onramp.money and Onmeta.
According to the ED, these entities were allegedly providing crypto-based on-ramp and off-ramp services that enabled users to convert Indian rupees into virtual digital assets, including stablecoins such as USDT, and vice versa, for cross-border transactions without obtaining the required authorisations from the Reserve Bank of India (RBI).
“ED, Bengaluru Zonal Office has conducted searches under section 37 of FEMA, 1999... on allegation of unauthorized cross-border transfer of money by multiple entities using Virtual Digital Assets (VDAs),” the agency said in its statement.
The ED alleged that the companies failed to comply with RBI-mandated requirements, including purpose codes and Foreign Inward Remittance Certificates.
Investigators also found evidence of large over-the-counter crypto transactions, the use of shell entities in tax havens and foreign crypto platforms to route funds.
ALSO READ | ED Gets Custody Of Sateesh Seth, Gautam Dosh In Reliance Infra, RCom-Linked Cases
During the searches, the agency froze bank accounts linked to some of the entities. “Restraint orders have been placed on bank accounts... having a balance of around Rs. 6 Crores,” the ED said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
