NEW DELHI, Aug 24: The investigations by the Enforcement Directorate (ED) into various cases of alleged Foreign Exchange Regulation Act violations by self-styled godman Chandraswami amounting to Rs 20 crore is at a "crucial stage", according to ED sources.

Opposing any relaxation of stiff bail conditions imposed on the Godman Chandraswami, counsel for the Enforcement Directorate told the Delhi High Court that investigation teams have gone abroad to probe the cases against Chandraswami in Hong Kong and Channel Islands.

The counsel for the Directorate, Madan Lokur said any relaxation of bail conditions at this stage would make it difficult to secure presence of Chandraswami, who was directed earlier by the High Court to report to the ED office here every fortnight.

``The total value of the violations in respect of the show cause notices (given to Chandraswami) is nearly 56 lakh US dollars,'' a Directorate document said.

``One of these show cause notices pertaining to transfer of US dollar five million to international arms dealer Adnan Khashoggi in New York by Chandraswami alias Nemi Chand Jain,'' the document said.

However, counsel for the accused, K K Manan, told the court that in the last three months though Chandraswami had reported to the ED regularly as per the directions laid down by the court but in not a single instance had he been questioned on the FERA allegations.

Manan requested the court to permit the accused to leave Delhi after furnishing details of his destination and stay as against the present condition that he should secure prior permission of ED before leaving the capital.

However, the court adjourned the matter for two months to see the progress in the investigation done by ED and the matter would now come up for hearing on October 14.

The ED document said that Chandraswami was yet to deposit the penalty levied against him though he had gone in appeal against the adjudication order in the appellate board.

Chandraswami was granted bail in the FERA cases by the High Court after he spent 39 days in judicial custody while being lodged at high security Tihar jail.

He was directed by the court to surrender his passport to the authorities. Chandraswami was asked by the HC not to leave Delhi without prior permission and also to report to the office of the Directorate every fortnight.

Of the total 14 show cause notices issued to Chandraswami by ED relating to alleged FERA violations, seven cases have been adjudicated against him and a total penalty of Rs 45 lakh (in these seven cases) have been imposed, while another has been adjudicated in favour of Chandraswami.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.