New Delhi: Jai Corp Ltd on Monday said the Enforcement Directorate (ED) has frozen demat accounts and mutual fund folios worth around ₹99 crore held by its subsidiary, Urban Infrastructure Venture Capital Ltd (UIVCL), following searches conducted last week. The clarification came after the company was asked by BSE and NSE to respond to media reports on an alleged fraud probe involving a director.
In a filing, the company said ED officials visited its Mumbai office on December 19 and also searched the residences of chairman Anand Jain, vice-chairman Virendra Jain and managing director Gaurav Jain. The Mumbai Zonal Office-II of the ED subsequently issued an order under Section 17(1A) of the Prevention of Money Laundering Act, 2002, directing the freezing of certain securities and fund holdings of UIVCL, valued at about ₹99 crore as of December 19.
The company added that the ED also seized nearly ₹1.74 crore in cash from the residences of Virendra Jain and Gaurav Jain. Jai Corp said it is assessing the legal position and noted that the matter is currently sub judice, making it difficult to determine any financial impact at this stage.
Jai Corp further stated that, in its understanding, there is no specific disclosure requirement under Regulation 30 of the SEBI (LODR) Regulations for such an ED order, and that it chose to evaluate facts and legal aspects before making any disclosure to avoid inaccuracies.