While there are allegations and counters to the Enforcement Directorate’s (ED) investigation about possible FEMA violations by the Edelweiss, here’s what you need to know about this case:
An investigation about a forex violation by Capstone: Initial reports by India Today labeled the case to be a “2000 crore scam” which was strongly refuted by the Edelweiss Group and sending them a legal notice of defamation. The media reports now term it to be an investigation on forex violations of 740 crore by an entity called Capstone not Edelweiss!
The mystery behind Sanjay Shah: An independent director on the board of few subsidiary companies of Edelweiss and his link with Capstone seems to be the probable cause of concern at the ED. After a strong statement by Edelweiss on last Sunday stating that he is a mere Independent Director and has no other connection or relation with their Chairman Mr. Rashesh Shah. This mystery too is put to rest. As per the latest media reports, he has resigned now.
Company’s statements: Strong clarification by the company via a public statement and notice to exchanges hopefully will put the controversy to rest.
So is there a “Larger forces victimising Edelweiss” or “Targeting influential business community by a news channel” or simply “False sensationalisation by media” will continue to be a mystery till the investigations are complete. Till then, it will continue to be “A curious case of Edelweiss”
