The Enforcement Directorate, which issued a “blue notice” to gather information about former IPL chairman Lalit Modi’s whereabouts and activities on October 1, may request the authorities concerned for revoking his passport if he fails to appear before the probe agencies within 15 days of the notice.
The ED, which is probing Foreign Exchange Management Act (Fema) violations against Modi, had issued several summons to him in the last few months. He has not replied to the summons served, sources said, adding that now the agency would have no option except to get his passport revoked, if he fails to appear before the directorate within 15 days.
“Besides, the ED may also impose penalty on former chairman of the IPL for Fema violations. If a person is booked under Fema, the ED imposes penalty also which is normally three times of the actual amount of the violation,” sources said. On the basis of initial probe, the agency officials believe that Mr Modi is allegedly involved in the Fema violation to the tune of Rs 250 crores to Rs 300 crores, sources added.
Sources, however, made it clear that before deciding the actual amount of violation, it would be necessary for the probing officials to question Mr Modi. They also maintained that the possibility of booking Mr Modi under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act Act could not be ruled out. “If the probe reveals that he has been constantly indulging in Fema violations, he might be booked under stringent COFEPOSA Act,” sources said. Mr Modi is suspected to have acquired potential foreign exchange outside India and has allegedly indulged in violation of income-tax rules also, sources added. Probe officials are also trying to get details of Mr Modi’s monetary transactions allegedly made through hawala channels, sources said.
Sources further said that there were also reports which suggested that Mr Modi allegedly invested a huge amount in several foreign-based benami companies. These benami companies routed a huge amount of funds in India, sources said. The Central revenue intelligence agencies may send a team of its officials to Mauritius, Cyprus, Caribbean Islands, Bahamas and Virgin Islands to find the link of 18 “benami” firms.