Major real estate firms of the country are under investigation by enforcement agencies for alleged breach of FDI terms and utilization of slush funds valued at several thousand crore brought in from some tax havens.
While the Enforcement Directorate has raided premises of realty company Emaar MGF for alleged breach of Foreign Exchange Management Act in the recent past, IREO is the next real estate fund and developer to attract the attention of ED.
Sources said many other firms are being observed and a detailed investigation is on. The IT department has also conducted its raids and is now intending to go deep within the tax statement of the realty firms.
When asked, IREO had said “Some officials from the department of revenue have approached IREO for certain information and clarifications, which are being duly responded to. IREO remains committed to fully cooperate with the authorities, like always.”
Actually, this step follows a report released by a division of the Revenue Department, which detected the real estate sector as the sector with the largest percentage of black money.
The most common breach that the investigating agencies have detected in the realty sector is the alleged violation of Foreign Direct Investment terms.