ED Files FEMA Case Against Real Estate Firm

Speedy Summary

• The Directorate of Enforcement (ED) has filed a complaint against Errol Fernandes, promoter of Ferns Estates and Developers, and his family under the Foreign Exchange Management Act (FEMA), 1999.
• Allegations involve contraventions worth ₹20.5 crore during the period 2017-2024.
• Investigations revealed ₹3.6 crore was remitted under the Liberalised Remittance Scheme (LRS) for investments abroad but returned to India after delays post redemption of investments.
• Additionally, ₹16.8 crore was remitted for “family maintainance” under LRS during the same period despite no relatives living abroad; this money was allegedly used for overseas investments and similarly returned after redemption and delays.
• Show-cause notices have been issued by ED following these findings.

Indian Opinion Analysis
The ED’s investigation into alleged violations by Errol Fernandes raises meaningful concerns about openness in financial transactions under schemes like LRS, which are intended for permissible personal uses such as family maintenance or legitimate foreign investments. If proven true, these contraventions could underline systemic loopholes in monitoring cross-border remittances and their utility declarations over extended periods of time.

For India’s governance on foreign exchange compliance, cases like this serve as a reminder to balance ease of use with stringent oversight mechanisms to prevent misuse while safeguarding economic integrity internationally.

Read more: published – August 06, 2025