ED Raids BPTP Real Estate Firm in NCR Over Rs 500 Crore FEMA Violation
The Enforcement Directorate (ED) has conducted search operations at multiple locations in the National Capital Region (NCR) in connection with a FEMA case involving the Faridabad-based real estate firm BPTP Ltd. The investigations revealed that BPTP Ltd. received foreign investments in violation of FEMA rules.
FemaReal EstateBptp LtdEdForeign InvestmentReal Estate NewsAug 29, 2025
Investigations under FEMA were initiated based on information that BPTP Ltd. received Foreign Direct Investment (FDI) amounting to more than Rs. 500 Crore (INR Equivalent) from Mauritius-based entities. The search operations were executed by the ED's Gurugram zone office.
"The search operations were conducted at the offices of BPTP Ltd. and the residences of its Chairman and Managing Director, Kabul Chawla, and Whole-Time Director, Sudhanshu Tripathi," stated an ED official. The investigations revealed that the company had received FDI to the tune of Rs 322.5 Crore from CPI India I Ltd., Port Louis, Mauritius, and Rs. 215 Crore from Harbour Victoria Investment Holding Ltd., Mauritius.
The ED's inquiries uncovered that these investments were made under the automatic route during the financial year 2007–2008 and were structured with “put/swap” options—clauses that provided foreign investors with guaranteed returns upon exit, in violation of existing FEMA regulations.
The search operations resulted in the freezing of bank lockers, the recovery, and the seizure of significant incriminating documents and digital evidence. These documents revealed that despite specific directives from the Reserve Bank of India (RBI) to amend the shareholders’ agreement and remove the impermissible “put option” clause prohibited under the then-existing FDI policy, BPTP Ltd. failed to comply, thereby violating FEMA provisions and applicable FDI regulations.
"Kabul Chawla was the beneficial owner of multiple foreign entities, one of which had previously been used to acquire a costly immovable property in New York, USA. These foreign entities, the overseas property, and the source of funds used for the acquisition are also now under examination as part of the ongoing FEMA investigation," said the ED official.
Moreover, the investigation revealed that multiple FIRs were registered against BPTP Ltd. and its Directors across various police stations in Delhi-NCR for non-completion of various projects for a long period and the diversion of funds therein, which are also subjects of investigation. Further investigation into the matter is ongoing.
BPTP Ltd. is a prominent real estate firm based in Faridabad, known for developing large-scale residential and commercial projects. The ongoing investigation by the ED is expected to shed light on the firm's financial practices and compliance with regulatory norms. The case highlights the importance of adhering to FEMA regulations and the consequences of non-compliance.
Frequently Asked Questions
What is FEMA?
FEMA stands for the Foreign Exchange Management Act, a set of regulations in India governing foreign exchange transactions and the flow of foreign investment into the country.
Why did the ED conduct search operations at BPTP Ltd.?
The ED conducted search operations at BPTP Ltd. to investigate the firm's alleged violation of FEMA rules, particularly concerning the receipt of foreign investments from Mauritius-based entities in violation of existing regulations.
What were the findings of the ED's investigation?
The ED's investigation revealed that BPTP Ltd. received FDI amounting to more than Rs. 500 Crore from Mauritius-based entities, structured with 'put/swap' options that provided guaranteed returns, violating FEMA rules.
Who are the key individuals involved in the BPTP Ltd. case?
The key individuals involved in the BPTP Ltd. case are Kabul Chawla, the Chairman and Managing Director, and Sudhanshu Tripathi, the Whole-Time Director of the firm.
What are the potential consequences of the violations found by the ED?
The potential consequences of the violations found by the ED include legal actions against BPTP Ltd. and its directors, freezing of assets, and further investigations into related financial practices and compliance issues.
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