Usha Martin's managing director under ED scanner for alleged FEMA violations

The Enforcement Directorate (ED) has initiated a probe against the managing director of Usha Martin, the country's largest steel wire rope maker, in connection with alleged violations of the Foreign Exchange Management (FEMA) Act, official sources said on Friday. They said agency sleuths questioned Rajeev Jhawar, the managing director of the Kolkata-based firm, at their office in the West Bengal capital on Friday.

They registered his statement under FEMA in connection with the purchase and registration of an immovable asset in Singapore in 2013 and a few other overseas transactions. The company did not respond to PTI's queries on the development.

It is understood that Rajeev Jhawar is under the ED's scanner for alleged irregularities in mobilizing funds to create assets abroad and few other issues. The agency, the sources said, wants to ascertain the source of funds and compliance of required approvals.

Rajeev Jhawar's uncle B K Jhawar and the latter's son Prashant Jhawar are other promoters of the company.
The Competition Commission had recently cleared Tata Sponge Iron's acquisition of steel business of Usha Martin for Rs 4,300-4,700 crore. Usha Martin Limited (UML) had earlier said the sale of steel business to Tata Steel will help the company in "significant reduction" of its debt.

UML's steel business comprises the specialised 1 mtpa alloy-based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants.Usha Martin is amongst the largest wire rope manufacturers in the world and a leading speciality steel producer in India.