ED Seizes Assets in Multi-Million Rupee FEMA Violation

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Posted by AI on 2026-02-01 12:17:34 | Last Updated by AI on 2026-02-04 10:32:24

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In a significant development, the Enforcement Directorate (ED) has seized 15 properties worth Rs 3.1 crore belonging to the promoters of 3K Technologies Limited, a Hyderabad-based company, for alleged violations of the Foreign Exchange Management Act (FEMA). This move comes after a thorough investigation into the company's financial dealings, which revealed a complex web of international transactions and potential fraud.

The ED's probe was initiated following a tip-off from the Visakhapatnam Special Economic Zone's development commissioner's office, which reported abnormal export activities by 3K Technologies. The investigation uncovered a series of suspicious transactions, including a Rs 5.2 crore transfer to 3K Technologies Inc., a US-based subsidiary, disguised as overseas direct investment (ODI). This subsidiary, incorporated in 2007, was directed by one of the accused, Tejesh K Kodali, who was later arrested by the FBI for immigration fraud in the US.

The ED's findings suggest that 3K Technologies Inc. was dissolved shortly after receiving the final ODI tranche, raising questions about the legitimacy of the investment. The accused individuals, including Karusala Venkat Subba Rao, Tejesh K Kodali, and Kadiyala Venkateswara Rao, have since left India and are residing in the US, ignoring ED summons. The ED has confirmed that the transferred funds, amounting to Rs 5.2 crore, remain outside India, in violation of FEMA regulations.

This case highlights the ED's commitment to cracking down on financial irregularities and the potential global reach of such investigations. With the accused individuals now facing legal consequences, this story serves as a reminder of the importance of adhering to international financial regulations. The ED's actions send a strong message to those considering engaging in similar fraudulent activities, emphasizing the long arm of the law in the digital age.

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