ED conducts searches in FEMA case against Haryana-based real estate firm

The Enforcement Directorate (ED) has carried out searches on several premises in and around Delhi in connection with an inquiry initiated under the Foreign Exchange Management Act (FEMA) against Haryana-based real estate company BPTP Limited, said the agency on Friday (August 29, 2025).

The company was formerly known as Business Park Town Planners Private Limited. “The search operations were carried out at the offices of BPTP Ltd. and the residences of its chairman and managing director, Kabul Chawla, and whole-time director, Sudhanshu Tripathi,” it said.

According to the agency, BPTP Ltd. received foreign direct investment (FDI) amounting to more than ₹500 crore from Mauritius-based entities in violation of prevailing FEMA rules and regulations. “Enquiries revealed that the company had received FDI to the tune of ₹322.5 crore from CPI India Ltd., Port Louis, Mauritius, and ₹215 crore from Harbour Victoria Investment Holding Ltd., Mauritius,” said the agency.

The said investments were made under the automatic route during 2007-2008, and were structured with “put/swap” options-clauses that provided the foreign investors with guaranteed returns upon exit in violations of existing FEMA regulations, the ED said.

Lockers sealed

“The search operations resulted in the freezing of bank lockers, recovery, and seizure of significant incriminating documents and digital evidence, which revealed that despite specific directives from the Reserve Bank of India (RBI) to amend the shareholders’ agreement and remove the impermissible ‘put option’ clause prohibited under the then-existing FDI policy, BPTP Ltd. failed to comply...,” said the agency.

The ED alleged that Mr. Chawla was the beneficial owner of multiple foreign entities, one of which had previously been used to acquire a costly immovable property in New York, U.S. These foreign entities, the overseas property, and the source of funds used for the acquisition are also now under examination as part of the ongoing FEMA investigation. Multiple FIRs have been registered against BPTP Ltd. and its directors across various police stations in the Delhi-National Capital Region for non-completion of various projects for a long period of time and diversion of funds therein, it said.