The Enforcement Directorate (ED) has conducted searches on Kumaraswamy Mineral Exports Pvt Ltd and its directors over alleged violations of the Foreign Exchange Management Act (FEMA). The raids took place on March 27 across three sites in Bengaluru and one in Mangaluru.
According to the ED, the investigation was launched following intelligence from the Income Tax Department. Preliminary findings suggested that the company diverted export proceeds into overseas accounts belonging to entities in which its directors held stakes.
Among the directors searched were Shantesh and Jyothi Gureddi, Bhavani Prasad Tapal and Renuka Devi, Ravindranath and Uma Alva. The agency stated that export profits were funneled into foreign accounts through multiple companies created abroad. These accounts were then used to route the funds and acquire properties outside India.
Notably, Shantesh Gureddi is alleged to have purchased a luxury property in London — No. 09, Hay’s Mewa — worth approximately £6.4 million (around ₹67 crore), allegedly using these diverted funds.
Further evidence obtained during the raids indicates that several bank accounts were opened abroad to park profits, and part of the export revenue was channeled into buying assets in the names of directors and their relatives.
The ED has recorded statements under FEMA and is continuing to probe the financial trail to determine the full extent of the violations.
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