FEMA Violation: ED Raids Faridabad-Based Real Estate Firm BPTP Ltd
The Enforcement Directorate (ED) has conducted search operations at various locations in NCR, including the offices and residences of top executives of BPTP Ltd, a Faridabad-based real estate firm, in connection with a Foreign Exchange Management Act (FEMA) violation involving Rs 500 crore.
FemaFdiReal EstateEdBptp LtdReal 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, in violation of prevailing FEMA rules and regulations.
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 found 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 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's 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, had 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 also now under examination as part of the ongoing FEMA investigation.
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 of time and the diversion of funds therein, which are also a subject of investigation.
Further investigation into the matter is ongoing.
Frequently Asked Questions
What is FEMA and why is it important?
FEMA (Foreign Exchange Management Act) is a law in India that regulates foreign exchange and the flow of foreign investment. It is crucial for maintaining the stability of the Indian economy and ensuring that foreign investments are made in compliance with regulatory norms.
What is the automatic route for FDI in India?
The automatic route for FDI allows foreign investors to invest in Indian companies without prior approval from the government, as long as the investment complies with sector-specific caps and other regulatory requirements.
What are 'put/swap' options in the context of FDI?
Put/swap options in FDI are clauses that provide foreign investors with guaranteed returns upon exit. These options are often structured to ensure that investors can exit their investment at a predetermined price, which can be in violation of FEMA regulations if not properly authorized.
Who is BPTP Ltd and what are they accused of?
BPTP Ltd is a Faridabad-based real estate firm accused of receiving FDI from Mauritius-based entities in violation of FEMA rules. The company is also under investigation for non-completion of projects and the diversion of funds.
What actions has the ED taken in this case?
The Enforcement Directorate (ED) has conducted search operations at the offices and residences of BPTP Ltd's top executives. They have seized incriminating documents and digital evidence, frozen bank lockers, and are examining the company's foreign entities and overseas property acquisitions.
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