The Enforcement Directorate has issued notices to Karnataka Minister and senior Congress leader Roshan Baig and his family in a Foreign Exchange Management Act (FEMA) Violation case. The minister faces allegations of his company receiving unaccounted funds from a firm in the Gulf. The notice comes months ahead of Karnataka Assembly Election 2018.
A FEMA violation notice has been served to Baig and his family after the ED intercepted unaccounted funds being pumped to Ruman Enterprise, a family-owned firm. The ED has alleged that the firm, in which Roshan Baig is a Director, has received funds from a foreign firm based in the Gulf. Baig faces allegations of inappropriate accounts for the funds. Ruman Baig, who runs the firm, has allegedly received crores of rupees from the foreign firm for "purpose of investment as shares", the same, however, has not been accounted or documented for, as per ED notice.
In its notice to Roshan Baig, the ED has alleged that the family's company has failed to allow any shares during the stipulated period, thus making the investment a case of FEMA violation. Baig has been asked to explain the end use of funds received through foreign channels for investment purposes. Apart from the minister in Siddaramaiah's cabinet, notices have been served to Baig's son and daughter as well- who are also directors of the firm.
The Congress strongman is Karnataka's Minister for Infrastructure, Urban Development, Information and Haj. Baig, easily the prominent Muslim face for the Congress in Bengaluru was pushing his son's prospects as a Congress candidate in the upcoming Karnataka Assembly Elections 2018. The notice comes as a setback to the Congress government in Karnataka that has often taunted the Bharatiya Janata Party (BJP) and its state leaders over allegations of corruption and violations when in power.
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