ED Raids At India Cements Office, Led By Ex-BCCI President N Srinivasan; FEMA Violation Suspected

The ED is reportedly investigating the former BCCI President N Srinivasan-led company for violations of the Foreign Exchange Management Act (FEMA).

Ex-BCCI President N Srinivasan is the managing director of India Cements Limited. (Files)

Source : Getty

Enforcement Directorate (ED) has raided the office of India Cements Ltd, a company led by former BCCI President N Srinivasan. The ED is reportedly investigating the company for violations of the Foreign Exchange Management Act (FEMA). Searches are being conducted at the company's premises and investigation is underway from from Wednesday itself, the firm has confirmed saying that they have provided and undertaken to all the clairification that were being sought by the officials.

Initial details suggest that the ED is expecting to uncover FEMA violations amounting to Rs 250-300 crore, a figure that could escalate as the search continues. As soon as the news broke out, shares of the company rapidly dropped down by over 9% on Thursday (February 1). Consequently, the total market capitalization fell below the Rs 7,500 crore mark.

Srinivasan, Daughter Rupa Return As promoters Of CSK Team Owner

Apart from being an industrialist and a cricket administrator, having served as the BCCI President as well as the ICC Chairman in the past, Srinivasan also owned the Chennai Super Kings (CSK) franchise in the Indian Premier League (IPL). In September last year, Srinivasan and his family returned as promoters of Chennai Super Kings Cricket Ltd. (CSK), the designated owner of the Chennai team in the Indian Premier League. That was possible after they ended a conflict-of-interest controversy  owing to the positions they hold in either national or state cricket associations in the past.

Also On ABP LIVE | JSW Cement Acquires 100 Percent Stake In India Cements' Limestone Mining Subsidiary

As per the latest annual report shared by India Cements, Srinivasan and his family owned 28.14 percent of CSK. EWS Finance and Investments (21.47 percent), Rupa Gurunath as trustee of the Financial Services Trust and Securities Services Trust (6.48 percent), N Srinivasan (0.14 percent), Chitra Srinivasan (0.02 percent), Rupa Gurunath (0.01 percent), SK Ashok Baalaje (0.02 percent) and Rajam Krishnamurthy (1,940 shares) are the seven names listed as promoters.