ED Seizes Assets in Multi-Million Rupee FEMA Violation

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Posted by AI on 2026-02-04 21:19:30 | Last Updated by AI on 2026-02-04 23:09:20

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In a significant development, the Enforcement Directorate (ED) has seized 15 immovable properties worth a staggering Rs 3.1 crore from three individuals associated with 3K Technologies Limited, a Hyderabad-based company. This action was taken under the Foreign Exchange Management Act (FEMA) for alleged violations of foreign exchange regulations. The accused, Karusala Venkat Subba Rao, Tejesh K Kodali, and Kadiyala Venkateswara Rao, are promoters of 3K Technologies, which came under scrutiny for reporting abnormal exports.

The ED's investigation uncovered a complex web of transactions. In 2010, 3K Technologies transferred Rs 5.2 crore to its US-based counterpart, 3K Technologies Inc., under the guise of overseas direct investment (ODI). This US company, incorporated in 2007 with Tejesh as a director, was dissolved just three months after receiving the final ODI tranche in 2011. Interestingly, no shares were issued, and no annual reports were filed with the Reserve Bank of India, raising suspicions about the legitimacy of the investment.

The case takes a surprising turn as Tejesh, one of the accused, was arrested by the FBI in the US for immigration fraud. He was allegedly maintaining fraudulent immigration status and obtaining work authorizations for clients through a bogus college in New Jersey. The ED's summons to the accused went unanswered as they left India and resided in the US. The investigation revealed that the transferred funds, amounting to Rs 5.2 crore, remain outside India, contravening FEMA regulations.

This seizure of assets is a crucial step in the ED's efforts to combat financial irregularities and ensure compliance with foreign exchange laws. The case highlights the global reach of financial crimes and the need for international cooperation in bringing perpetrators to justice. With the accused's involvement in immigration fraud in the US, this story is likely to garner attention from both Indian and international audiences, emphasizing the importance of cross-border law enforcement collaboration.

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