Under the Prevention of Money Laundering Act and Foreign Exchange Management Act, the Enforcement Directorate may file a case against Raj Kundra. Raj Kundra was arrested for an alleged porn racket on July 20 in Mumbai. The case has aspects of financial irregularities as well.
Raj Kundra’s company is owned by Kundra’s brother-in-law. The company used to run an online streaming application that allegedly made porn videos. Kundra was sent to police custody till July 23, but it has now been extended to July 27.
Following the Mumbai Police investigation, several aspects of the cases come up. Earlier the Police said that the charges against him are for making pornographic films and cheating people with the promises of Bollywood roles.
The financial aspects of the case are also being inquired, regarding which the Enforcement Directorate can launch a separate investigation. Charges under FEMA may be filed against Kundra by ED as most of Kundra’s transactions were with foreign films.
Under the Foreign Exchange Management Act (FEMA) foreign exchange-related offenses are civil offenses. Under the Prevention of Money Laundering Act(PMLA) the authority can confiscate property obtained for the laundered money.
According to Mumbai Police, Raj Kundra was planning to sell 119 adult films to a foreign individual for a total of $1.2 million. The police also suspect that the money earned through the app might be used in online betting, as a South Africa-based sports betting firm transferred money into Kundra’s bank account.