NEW DELHI: The Reserve Bank of India has suggest ED that the Enforcement Directorate looks into the allegations of dubious funds routed by US-based financial institution DE Shaw into various entities in India. ED is responsible for investigation into cases of foreign exchange violations and money laundering .
RBI has further complained to the government that a letter supposedly sent by the Commerce Ministry's Department of Industrial Policy and Promotion, or DIPP, requesting enquiry into allegations against DE Shaw was forged and asked the finance ministry to investigate the same.
"The banking regulator has clarified that it does not maintain minute details of foreign investments in the country as the onus is on the Indian company (which seeks FDI) to comply with the FDI policy," said a senior official with the finance ministry.
The RBI has said that it maintains the foreign direct investment data for post-investment reporting for balance of payment (BoP) statistics and it has only basic details of non-resident investors, mainly the know-your-customer (KYC) details and overseas bank account particulars. The finance ministry official clarified that the government has not ordered any investigation into investments made by DE Shaw in India.
"We are looking into the matter and will soon take a decision," he said, adding that in a particular investment the matter is already pending in the Delhi high court. The Delhi High Court has issued notices to the global investment firm in May this year in the ongoing case between DE Shaw Group and the Hindi print media company Amar Ujala Publications.
The court had also sought clarifications from RBI, the government's foreign investment clearance body FIPB and Ministry of Corporate Affairs to explain their stand on the Rs 117 crore deal in 2007 where DE Shaw had acquired 18% stake in the Amar Ujala Publications.
The court asked DE Shaw to file its reply within two weeks and asked RBI, FIPB and others to submit their replies by July 14, the next date of hearing.
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