The Enforcement Directorate (ED) has launched a probe against the Managing Director of Usha Martin, the country’s largest steel wire rope maker, in connection with alleged violations of the Foreign Exchange Management Act (FEMA), agency sources said on Friday.
The said agency sleuths questioned Rajeev Jhawar, the MD of the Kolkata-headquartered firm, at their office in the capital of West Bengal on Friday.
The officials recorded Jhawar’s statement under FEMA in connection with the purchase and registration of an immovable asset in Singapore in 2013 and a few other overseas transactions.
Jhawar is under the Enforcement Directorate’s scanner for alleged irregularities in mobilising funds to create assets abroad.
The agency wants to ascertain the source of funds and compliance of required approvals, the sources said. Jhawar’s uncle BK Jhawar and the latter’s son Prashant Jhawar are other promoters of the company.
The Competition Commission had recently cleared Tata Sponge Iron’s acquisition of steel business of Usha Martin Ltd. (UML) for Rs 4,300-4,700 crore. UML had earlier said the sale of steel business to Tata Steel will help the company in “significant reduction” of its debt.
Usha Martin is amongst the largest wire rope manufacturers in the world and a leading producer of speciality steel in India.