FEMA investigation at Kalanee Impex: Searches in Mumbai intensify scrutiny of export proceeds and foreign accounts

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FEMA investigation at Kalanee Impex

Highlights

During the search at Kalanee Impex Private Limited’s Mumbai premises, the Enforcement Directorate recovered evidence of alleged undisclosed foreign companies and bank accounts linked to director Dharmesh Sangani.
Export proceeds worth crores of rupees remained unrealized even after the prescribed deadline, and no permission was obtained from the RBI or authorized dealer banks for these.
The investigation is also examining the validity of the jewelry worth 3.05 million U.S. dollars seized by US Customs in June 2025 and export payments received from third parties.

This article was translated from the original. Read the original version by our correspondent here.

Documents found during the search and scope of investigation

According to the Enforcement Directorate, its Headquarters Investigation Unit conducted searches at several premises in Mumbai under the Foreign Exchange Management Act, 1999, linked to Kalanee Impex Private Limited. The company’s directors are Dharmesh Sangani, Narendra Sangani, and Mrs. Rajeeta Dharmesh Sangani.

During the search, evidence was found of alleged undisclosed foreign companies and foreign bank accounts linked to director Dharmesh Sangani. The agency states that these companies and accounts were not disclosed in income tax returns, and now the source of funds, ownership structure, and other related aspects are under investigation.

The investigation also revealed that export proceeds worth crores of rupees remained unrealized even after the deadlines specified in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 and the relevant Reserve Bank of India Master Direction had lapsed. According to the agency, no required permission was obtained from Authorised Dealer Banks or the Reserve Bank of India to extend the deadline for export realization.

Export transactions, customs alerts, and potential legal risks

In May 2026, the Customs Department issued a public notice listing the company among defaulting exporters whose shipping bills remained unrealized as per customs records. This aspect has now become part of the broader FEMA compliance investigation.

The agency is also probing why, in some export deals, payments were received from third-party entities instead of the declared foreign buyers or consignees. The validity of such third-party remittances, their commercial basis, and compliance with FEMA and RBI regulations are under scrutiny.

Documents found during the search also relate to the seizure of jewelry worth approximately 3.05 million U.S. dollars by U.S. Customs and Border Protection in June 2025. The agency is investigating the possible link between this seized consignment and the company’s exports from India.

The investigation also mentions an earlier incident from September 2016, when Dharmesh Sangani was stopped at Heathrow Airport, London, and 7,412 kilograms of allegedly under-declared gold jewelry was seized. Several incriminating documents and digital devices have also been seized during the search, which are being examined to uncover the full extent of the alleged violations, foreign assets, fund flows, and the roles of involved individuals.

Our previous report discussed the high-level talks held between India and Australia regarding a uranium export agreement. That article highlighted that the proposed deal signals important developments for nuclear fuel supply, clean energy strategy, and trade and investment cooperation between the two countries.

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