New Delhi, Jan 12 (SocialNews.XYZ) Edelweiss Group Chairman and CEO Rashesh Shah on Sunday wrote to the shareholders of the group reiterating that the allegations of company involvement in a forex scam is false, while the group and its management would cooperate, if required by the Enforcement Directorate (ED) in the ongoing investigation.
On Friday, an ED source said that the agency had summoned Shah on Thursday to join the investigation in a foreign exchange case. According to the ED officials, Shah is under the scanner in a Rs 2,000 crore forex scam. The case pertains to violation of foreign exchange laws and involves the Mumbai-based Capstone Forex Pvt Ltd.
Shah, however, did not turn up for questioning on January 9 and new summons have been issued against him.
In the letter, Shah denied any link between Edelweiss and Capstone Forex.
"I am writing to you directly, to assure you that Edelweiss has no relationship with Capstone Forex Pvt Ltd and all allegations of FEMA violations are false," Shah wrote in the letter.
He further wrote: "We appreciate that regulator and agencies have an obligation to investigate; if any information is sought from us, as a responsible corporate citizen, we will of course provide the same."
On not turning up for questioning on January 9, the CEO said that it is "unfortunate" that he was unable to go in person to ED, but a senior authorised representative attended the questioning by the agency.
Assuring that his company would cooperate in the ongoing investigations, Shah wrote: "Needless to say, if in the future any assistance or support to the investigation is requested from us, we will cooperate fully."
He also questioned the media coverage of the investigation and termed it as sensational.
"The media has sensationally reported false allegations, conjecture and innuendo. Several have done so without followeing the standard, responsible practice of first speaking with Edelweiss," he said.
He also said that the company would take legal action against the concerned media group. However, he did not name the group in question.
"We are, therefore, compelled to take appropriate legal action against the concerned media group, in order to protect and reinforce the reputation of Edelweiss," Shah wrote.
He also noted that media reports have suggested that Sanjay Nathalal Shah, Chartered Accountant and an independent director of a few of the group companies of Edelweiss, is alleged to be connected to Capstone, and said that the latter has no other connection with the Edelweiss Group, nor is he related to the Group CEO.
Source: IANS
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