The Directorate of Enforcement (ED) conducted a series of coordinated search operations in Phagwara, Punjab, on November 14, 2025, targeting locations linked to Opal Engineering Corporation (OEC). The crackdown, carried out by the agency’s Jalandhar Zonal Office, was initiated under the provisions of the Foreign Exchange Management Act (FEMA), 1999, following inputs about suspected irregularities in export-related payments received by the firm.
According to officials, the searches were executed at four premises associated with OEC, a company engaged in the export of engineering goods. Investigators suspect that the firm violated FEMA regulations by routing export proceeds through unrelated third parties and bypassing the standard procedures laid down by the Reserve Bank of India.
Exports to High-Risk Destinations Under Scanner
ED’s preliminary findings indicate that OEC exported engineering products to several countries, including Syria, Iran, Turkey and Colombia. However, the agency noted that the company failed to realise export proceeds in accordance with FEMA guidelines and RBI’s Master Circulars.
Instead of receiving payments directly from the buyers, OEC allegedly adjusted export proceeds against amounts remitted by unrelated parties based in different countries. Officials said the company also diverted payments into personal bank accounts, raising further suspicion about the legitimacy of the transactions.
Crucially, investigators found no tri-partite agreements or supporting documentation that would justify the adjustment of payments made by unrelated entities. The absence of proper records, ED said, suggests an attempt to conceal the true nature of the financial flows.
Fake Customs Email, Cash Settlements Detected
During the probe, the agency uncovered evidence showing that the firm used a fake Customs email ID to create a semblance of authenticity for several disputed adjustments. This alleged misuse of false digital communication channels forms one of the key leads in the ongoing investigation.
Additionally, ED officials reported that several export transactions were settled in cash—both within India and abroad. Such practices, the officials noted, violate established norms for cross-border trade and foreign exchange management, and raise concerns about possible money laundering or hawala-linked activity.
₹22 Lakh Cash and Digital Evidence Seized
The search teams recovered ₹22 lakh in Indian currency, along with several incriminating documents and electronic devices. These materials are now being examined to trace payment trails, identify beneficiaries, and verify whether the irregularities point to a larger network.
Officials emphasized that the seizures have provided “significant leads” regarding the handling of export proceeds, the role of third-party remitters, and the authenticity of documents submitted during the transactions.
Investigation to Continue
The Directorate of Enforcement stated that further investigation is underway to determine the full scope of the violations and identify all individuals and entities involved. More action, including additional summons and possible attachment of assets, is expected as the probe progresses.
The case adds to the growing list of FEMA-related violations detected across the country in recent years, as agencies increase scrutiny on exporters operating in high-risk trade corridors and on transactions involving third-party payments.
