ED Raids BPTP Offices in Delhi-NCR: Uncovering Foreign Funds Violations
The Enforcement Directorate (ED) conducted raids on the premises of real estate company BPTP in the Delhi-NCR region, investigating foreign fund violations amounting to ₹500 crore.
EdBptpForeign FundsFemaReal EstateReal EstateAug 27, 2025
The raids were conducted under the provisions of the Foreign Exchange Management Act (FEMA). BPTP, a Faridabad-based company, is under scrutiny for receiving foreign investment of more than ₹500 crore under the “automatic route” from foreign companies based in Mauritius during 2007-2008. The investments were allegedly made through put option/swap option arrangements, which are in contravention of existing FEMA rules and regulations.
Rohit Mohan, President of BPTP, responded to the raids, stating, “The matter under review pertains solely to historical investments made in 2007–08 by CPI India I Ltd., a Citi Group entity, and Harbour Victoria Investment Holdings Ltd., a JPMorgan Chase & Co. entity. All information sought by the authorities has already been provided, and we continue to extend full cooperation as required.”
The ED probe also includes multiple FIRs registered against the company and its directors across various police stations in the Delhi-NCR region. One of the key allegations is that the company’s CMD, Kabul Chawla, anonymously held foreign assets. This investigation is expected to shed light on the financial practices and compliance of BPTP with foreign investment regulations.
The enforcement actions by the ED highlight the ongoing efforts to ensure transparency and compliance in the real estate sector, particularly with regard to foreign investments. The findings of this probe could have significant implications for BPTP and the broader real estate industry in India, emphasizing the importance of adhering to regulatory frameworks and maintaining ethical business practices.
As the investigation progresses, it remains to be seen how these findings will impact BPTP’s operations and future investments. The company’s cooperation with the authorities is a positive step, but the outcomes of the probe will ultimately determine the course of action and any potential legal consequences.
Frequently Asked Questions
What is the Enforcement Directorate (ED)?
The Enforcement Directorate (ED) is a premier law enforcement agency in India responsible for enforcing economic laws and fighting economic crimes, particularly those related to foreign exchange violations and money laundering.
What is FEMA?
The Foreign Exchange Management Act (FEMA) is a legislation in India that regulates foreign exchange and transactions related to it. It aims to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India.
What is the 'automatic route' for foreign investment in India?
The 'automatic route' under FEMA allows foreign investors to invest in Indian companies without prior approval from the Reserve Bank of India (RBI), provided the investment falls within the specified sectors and limits.
What is a put option/swap option in the context of foreign investment?
A put option/swap option in the context of foreign investment typically involves a financial agreement where the investor has the right, but not the obligation, to sell the investment at a predetermined price within a specified period. Swap options are similar financial instruments that allow for the exchange of cash flows.
What are the potential implications of the ED probe for BPTP?
The ED probe into BPTP's foreign fund violations could result in legal actions, financial penalties, and regulatory sanctions. It may also impact the company's reputation and future investment prospects, emphasizing the importance of compliance with foreign investment regulations.
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