ED Raids Real Estate Firm BPTP Ltd Over Rs 500 Crore FEMA Violation
The Enforcement Directorate (ED) has conducted search operations at various locations in the NCR region, targeting Faridabad-based real estate firm BPTP Ltd. The raids are in connection with a FEMA case involving the receipt of over Rs 500 crore in foreign direct investment (FDI) from Mauritius-based entities, in violation of FEMA rules.
FemaReal EstateEdForeign InvestmentBptp LtdReal EstateAug 29, 2025
The search operations were carried out by the ED's Gurugram zone office. According to an ED official, the 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.
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. The investigation further uncovered that these investments were made under the automatic route during the financial year 2007–2008 and were structured with “put/swap” options, which provided the foreign investors with guaranteed returns upon exit, in violation of existing FEMA regulations.
The search operations resulted in the freezing of bank lockers and the recovery and seizure of significant incriminating documents and digital evidence. The ED found 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 also under scrutiny. One of these entities had previously been used to acquire a costly immovable property in New York, USA. The 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.
Moreover, the investigation revealed that multiple First Information Reports (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 a subject of investigation.
Further investigation into the matter is ongoing, and the ED continues to delve deeper into the financial activities of BPTP Ltd. and its associated entities to ensure compliance with Indian laws and regulations.
Frequently Asked Questions
What is FEMA?
FEMA stands for the Foreign Exchange Management Act, a law in India that regulates foreign exchange and the transactions that involve foreign exchange. It aims to facilitate external trade and payments and to promote the orderly development and maintenance of foreign exchange market in India.
What is the ED?
The ED stands for the Enforcement Directorate, a law enforcement agency in India responsible for enforcing economic laws and fighting economic crime. It operates under the Ministry of Finance.
What is FDI?
FDI stands for Foreign Direct Investment, which refers to the investment made by a company or individual in one country into a business or assets in another country. FDI is a key component of international trade and economic development.
What was the total amount of FDI received by BPTP Ltd. from Mauritius-based entities?
BPTP Ltd. received a total FDI amount of Rs 537.5 Crore from Mauritius-based entities, with Rs 322.5 Crore from CPI India I Ltd. and Rs 215 Crore from Harbour Victoria Investment Holding Ltd.
What specific violations did BPTP Ltd. commit under FEMA?
BPTP Ltd. violated FEMA by receiving FDI with “put/swap” options that provided foreign investors with guaranteed returns upon exit, which was not allowed under the then-existing FDI policy. Additionally, the company failed to comply with RBI directives to remove impermissible clauses from the shareholders' agreement.
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