ED issues show cause notice to Watali
New Delhi: The Enforcement Directorate (ED) has issued show cause notice to Kashmiri businessman Zahoor Ahmed Shah Watali, arrested by the NIA in an alleged funding case.
The notice was issued under Foreign Exchange Management Act (FEMA).
“Based on the intelligence input, an investigation under FEMA was initiated against Watali and it was emerged that he maintained Non Resident External and Non Resident Ordinary accounts by misdeclaring himself as Non-Resident Indian.
“He later transmitted foreign remittances to the tune of Rs 6,293,711 during 2002-2003 to 2008-2009 in these accounts from overseas,” an ED statement said.
Further, Watali could not provide satisfactory answers as to the source of funds collected overseas and subsequent remittances to India, said the statement, adding adjudication proceedings under FEMA are in progress for the show cause notice.
Watali was arrested by the National Investigation Agency (NIA) on August 17, 2017 in an alleged funding case.