ED Raids Faridabad Real Estate Firm Over Rs 500 Crore FEMA Violation
The Enforcement Directorate (ED) has conducted search operations at various locations in the National Capital Region (NCR) against a Faridabad-based real estate firm, BPTP Ltd, for a Rs 500 crore FEMA violation.
FemaReal EstateEdBptp LtdFdiReal Estate NewsAug 29, 2025
The investigations were triggered by information indicating that BPTP Ltd had received Foreign Direct Investment (FDI) amounting to more than Rs 500 crore from entities based in Mauritius, in violation of prevailing FEMA rules and regulations.
The search operations were conducted by the ED's Gurugram zone office. According to an ED official, the searches were carried out at the offices of BPTP Ltd and the residences of its Chairman and Managing Director, Kabul Chawla, and Whole-Time Director, Sudhanshu Tripathi.
The ED's inquiries 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. 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 seizure of significant incriminating documents and digital evidence. The investigation also 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, the beneficial owner of multiple foreign entities, was found to have previously used one of these entities 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 now under examination as part of the ongoing FEMA investigation.
Furthermore, multiple FIRs have been 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, which are also subjects of investigation.
Further investigation into the matter is ongoing.
Frequently Asked Questions
What is the main reason for the ED's search operations against BPTP Ltd?
The main reason for the ED's search operations against BPTP Ltd is the violation of FEMA rules and regulations, specifically the receipt of Rs 500 crore in FDI from Mauritius-based entities with impermissible “put/swap” options.
What specific actions did BPTP Ltd take that violated FEMA regulations?
BPTP Ltd received FDI with clauses that provided foreign investors with guaranteed returns upon exit, which is not allowed under FEMA regulations. They also failed to comply with RBI directives to remove the impermissible “put option” clause.
What were the outcomes of the ED's search operations?
The search operations resulted in the freezing of bank lockers, the recovery and seizure of significant incriminating documents and digital evidence, and the examination of multiple foreign entities and a costly immovable property in New York.
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.
What other legal issues is BPTP Ltd facing?
BPTP Ltd is also facing multiple FIRs registered against it and its directors for non-completion of projects and the diversion of funds in the Delhi-NCR region.
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