Hyderabad: YSRC rebel MP Kanumuri Raghu Ramakrishna Raju on Thursday approached the Telangana High Court challenging the Enforcement Directorate's proceedings of November 3, which imposed a Rs. 40 crore fine on him for violating the Foreign Exchange Management Act (Fema).
The ED had issued the order stating that Raju’s company Ind Barath Sun Energy Pvt Ltd (IBSEPL) had obtained foreign direct investment (FDI) of Rs.202 crore from Strategic Energy Investments Ltd, Mauritius (SEIL) in 2010, and transferred Rs. 200 crore of the amount into Ind Barath Energy (Utkal) Ltd as downstream investment. The ED said that in these transfers, IBSEPL had violated FEMA provisions.
According to Raju, IBSEPL is an operating cum investing company, hence approval is not required under the FDI policy. He said he had resigned from IBSEPL in 2013.
The High Court issued notices to the ED seeking a reply.
