ED opens FEMA probe against film producer Dharmesh Sangani

The Enforcement Directorate (ED) has launched an investigation under the Foreign Exchange Management Act (FEMA) into Mumbai businessman and film producer Dharmesh Narendra Sangani and his company, Kalanee Impex Private Limited. The investigation is looking into claims of undisclosed foreign assets, export proceeds not brought back to India, and suspicious international transactions.

Officials said the agency conducted searches on Thursday (July 9) at locations linked to the company and Sangani. The investigation found major issues, such as export proceeds from overseas buyers not being returned to India, a large shareholding in an undisclosed Canadian company, and foreign bank accounts in Canada, the United States, and the United Arab Emirates that were not reported to authorities.

ED sources said that export proceeds from some overseas buyers had still not been received despite a long delay. The company reportedly did not receive time extensions from the authorised dealer bank and made no documented attempts to recover the money. Some export proceeds were received from third parties rather than the buyers listed on the export invoices or shipping bills.

During the raids, officials found evidence of undisclosed foreign assets and bank accounts, including a large shareholding in a Canadian company that had not been reported.

Sangani owned a large share in a Canadian company that was not disclosed, along with related foreign bank accounts and transactions that were not reported to the authorities. Investigators also found a UAE business entity connected to the case that had not been disclosed. Bank accounts in Canada, the US, and the UAE have been flagged in the investigation. Officials noted that Customs authorities in the United States and the United Kingdom are separately probing certain transactions involving Sangani, and the ED is examining potential FEMA violations arising from those.

During the searches, ED officials claimed that Sangani tried to destroy digital evidence by throwing his mobile phone from the 13th floor of a building. Investigators later recovered the phone and took it as evidence. The ED has filed a complaint with the Mumbai Police against Sangani for destroying evidence.

Dharmesh Narendra Sangani is known as an entrepreneur who became a film producer. He is an active director of Kalanee Impex Private Limited, a Mumbai-based company started on December 7, 2011. Other directors are Rajeeta Dharmesh Sangani and Narendra Prabhudas Shangani. Sangani is connected with veteran actor and TV host Shekhar Suman. He co-founded the Shekhar Suman Film Academy (SSFA) and is associated with GBM Studios Private Limited, which operates in film production and training.

This is not his first encounter with regulators. In September 2016, UK Border Force officers seized about 7.4 kg of gold jewellery from him upon his entry into the UK, stating it was under-declared.

The ED’s action is under FEMA, 1999, which regulates foreign exchange transactions and violations in India. Breaking these rules can lead to penalties up to three times the amount involved, as well as confiscation of assets and other strict measures. The agency has become more active in investigating cross-border financial issues.

The investigation into Kalanee Impex continues to raise concerns about export-related foreign exchange violations and the presence of hidden foreign entities and accounts. Customs agencies from the US and UK are also involved, making the case more complex. The investigation is still ongoing. No arrests have been made yet, and officials are focused on collecting more evidence.

The ED is still reviewing documents, digital evidence, and financial records found during the searches. This case has attracted attention in both the entertainment and business worlds because of Sangani’s connections to the film industry and the Shekhar Suman Film Academy.

Sangani and his company could not be reached for comment. A statement from the film academy with which he is affiliated is still pending.