MUMBAI, Dec 4: The Enforcement Directorate (ED) in Mumbai has started investigations into the activities of M/S Top Worth Investments (Macau) Ltd which has allegedly violated RBI rules by soliciting business in India when it was specifically barred from doing so. The company was permitted only a liaison office, which is located in Tardeo.

ED officials raiding the office on Tuesday found that several accounts had been opened (in Macau) by resident Indians, some of who further indulged in currency speculation. Macau, a tax haven, is a Chinese peninsula governed by the Portugese, and will revert to China in December 1999.

The company came under the ED's searchlight after the Customs department recently filed a case against one Naval Bangad in a duty drawback case.

Bangad, owner of Tropical Exports, had allegedly submitted forged shipping bills to claim drawback worth Rs 50 crore. Bangad and his sister-in-law, Vinita Lakhotia, had accounts in Macau with M/S Top Worth Investment, and Bangad is suspected to have lost over US $300,000 in currency speculation.

What is interesting in this case is the ease with which Top Worth has been mobilising money from Indians (at least 50 accounts with US $20000 to 50000) and having it transferred abroad when is cannot do so under stringent FERA and RBI regulations.Foreign firms have been allowed limited operations in India and Top Worth was specifically disallowed commercial operations, ED sources said. Top Worth Investment was started in 1995 by one Fredric Yuk, who is now the Regional Director.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.