Enforcement Directorate Conducts Raids on Real Estate Firm BPTP in Delhi-NCR
The Enforcement Directorate (ED) has conducted searches across Delhi-NCR on premises related to real estate firm BPTP as part of a foreign exchange violation case involving funds of about ₹500 crore.
Real EstateEdBptpDelhincrForeign ExchangeReal EstateAug 27, 2025
Locations of Business Parks Town Planners Private Limited (BPTP) in Delhi, Noida, and Faridabad were searched under the provisions of the Foreign Exchange Management Act (FEMA). The investigation has revealed that BPTP received foreign investment of more than ₹500 crore under the 'automatic route' from foreign companies based in Mauritius during 2007-2008. This investment was made through put option/swap option, which is in contravention of existing FEMA rules and regulations, according to ED sources.
A BPTP spokesperson stated that the company is extending full cooperation to the authorities and remains confident that its position will be appropriately clarified in due course. The spokesperson added that BPTP has always complied with the applicable laws and regulations and remains committed to transparency, ethical business practices, and the interests of all stakeholders.
The sources also alleged that BPTP's CMD, Kabul Chawla, anonymously held foreign assets. Multiple FIRs have been registered against the company and its directors across various police stations in Delhi-NCR, which are also part of the current ED probe. The company has maintained its stance on compliance and is working to clear any misunderstandings with the authorities.
The ED's actions highlight the ongoing scrutiny of real estate firms in India, particularly those involved in large-scale foreign investments. This case underscores the importance of adhering to financial regulations and maintaining transparency in business operations.
Frequently Asked Questions
What is the Enforcement Directorate (ED)?
The Enforcement Directorate (ED) is a law enforcement agency in India responsible for investigating financial and economic crimes, particularly those involving foreign exchange violations and money laundering.
Why did the ED conduct searches on BPTP?
The ED conducted searches on BPTP as part of a foreign exchange violation case involving funds of about ₹500 crore. The investigation found that BPTP received foreign investment through put option/swap option, which is in contravention of existing FEMA rules and regulations.
What is the Foreign Exchange Management Act (FEMA)?
The Foreign Exchange Management Act (FEMA) is an Indian law that regulates foreign exchange and aims to facilitate external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India.
What is the 'automatic route' for foreign investment?
The 'automatic route' is a method under FEMA where foreign investors can invest in Indian companies without prior approval from the Reserve Bank of India (RBI), provided the investment complies with certain conditions and limits.
What is BPTP's stance on the ED's investigation?
BPTP has stated that it is extending full cooperation to the authorities and is confident that its position will be clarified. The company has also emphasized its commitment to transparency, ethical business practices, and compliance with applicable laws and regulations.
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