ED raids Jindal Steel offices over alleged forex violation; JSPL shares hit 3-week low

The Enforcement Directorate (ED) on Thursday raided the Delhi and Gurugram offices of Jindal Steel and Power Limited (JSPL) over a suspected violation of foreign exchange regulations.

The federal agency launched its investigation between 8:30 a.m. and 9 a.m. on Thursday in the corporate offices of JSPL in Delhi and Gurugram. Following the development, shares of JSPL tanked as much as 6% to Rs 541.10 - a three-week low.

JSPL was India’s fifth-largest crude steel producer in 2021 and competes with Tata Steel, JSW Steel, state-run SAIL, and ArcelorMittal Nippon Steel India (AMNS India).

Back in 2015, the ED had launched a probe against industrialist and former member of Parliament Naveen Jindal and his family for alleged violation of Foreign Exchange Management Act provisions.

The agency has been investigating whether or not foreign exchange laws were violated in operating bank accounts in Singapore, based on a tip-off by the Singapore Financial Intelligence Unit. The foreign agency has claimed four accounts held by the Jindals were being operated in a Swiss private bank, with some transactions in these accounts raising doubts.