What Did ED Discover During Searches at Five Money Changers in Hyderabad?
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Synopsis
In a significant crackdown, the ED's recent searches on five money changers in Hyderabad revealed shocking illegal activities and substantial cash seizures. This operation highlights the ongoing battle against financial irregularities in the region.
Key Takeaways
- ED conducted searches at five FFMCs in Hyderabad.
- FFMCs were operating without valid RBI licenses.
- Numerous irregularities, including counterfeit documents, were found.
- Significant cash, including Rs 11.99 lakh, was seized.
- Investigation into illegal activities is ongoing.
Hyderabad, Oct 17 (NationPress) - The Directorate of Enforcement (ED) executed searches on the premises of five Full Fledged Money Changers (FFMCs) in Hyderabad, as stated by the agency on Friday.
The ED's Hyderabad Zonal Office reported that these operations were conducted in accordance with the Foreign Exchange Management Act (FEMA), 1999. The targeted FFMCs included Prism Forex Private Ltd, Garuda Forex Services Private Ltd, Sree Vimal Nath Forex Private Ltd, Victory Forex & Travel Services Private Ltd, and Digital Forex Private Ltd on Thursday.
During the search, it was uncovered that these FFMCs were operating unlawfully without the necessary license from the Reserve Bank of India (RBI).
Previously, an RBI inspection of these FFMCs revealed numerous irregularities, including KYC documents lacking corresponding travel tickets, fictitious traveller identities, counterfeit flight tickets, alterations in flight dates and numbers, and discrepancies in customer signatures, according to the ED.
Additionally, multiple copies of the same travel ticket were found, with critical details forged. The sales were predominantly recorded against travel to popular destinations such as Indonesia, Maldives, Thailand, and Sri Lanka, where visas are not mandatory.
The RBI inspection prompted the surrender of licenses by the FFMCs in June-July of this year. However, the ED's investigation revealed that even after surrendering their licenses, certain FFMCs, namely Prism Forex, Victory Forex & Travel Services, and Digital Forex Private Limited, continued to operate, displaying fraudulent licenses.
Searches executed under FEMA resulted in the recovery of incriminating documents, mobile devices, and laptops containing records of illicit foreign currency transactions. The operation also uncovered unrecorded Indian currency amounting to Rs 11.99 lakh and foreign currency from various countries valued at approximately Rs 26.77 lakh.
Further investigations are ongoing, as stated by the ED.
Point of View
It is imperative to note that the ED's actions reflect a rigorous enforcement of financial regulations in India. This operation serves as a warning against the illicit activities that threaten the integrity of our financial systems. Upholding the law is essential to maintain trust in our economic framework.
NationPress
17/10/2025
Frequently Asked Questions
What are Full Fledged Money Changers?
Full Fledged Money Changers (FFMCs) are authorized entities that provide money changing services, allowing individuals to exchange currency.
What is the Foreign Exchange Management Act?
The Foreign Exchange Management Act (FEMA) regulates foreign exchange transactions in India to facilitate external trade and payment.
Why was the ED involved in this operation?
The ED was involved due to suspected illegal activities and non-compliance with regulations by the money changers.
What were the findings of the ED's searches?
The searches uncovered illegal operations, counterfeit documents, and significant cash seizures.
What is the next step following these searches?
Further investigations are underway to uncover the full extent of the illegal operations.
