Global commodities trader Trafigura under ED scanner

Enforcement Directorate (ED) is investigating Trafigura India for violations with respect to Foreign Exchange Management Act (FEMA), a source close to development told Zee Business “Trafigura India was under investigation for a Transfer pricing violation done in relation to transferring of profits outside India and thereby lowering the taxable income and evading the taxes to be paid”. 

“They have companies in Tax havens and moving money to those places helps them avoid paying taxes,” another source told Zee Business. 

The company is also under investigation for foreign exchange violations and various money laundering charges and currently is being investigated on multiple counts by enforcement directorate ( Agency that looks into the charges of Money Laundering and forex violations).  

In the past also, company was investigated by income tax investigation, sale tax in Maharashtra and Gujarat and Delhi NCR. Company's back end process is based out of Mumbai's BKC office , and handles all the process for the global trades,  that includes Crude Oil, metals , steel, iron ore & coal. Company denied allegations and responded the mail sent by Zee Business as  “Trafigura is committed to operating responsibly and responds appropriately to requests from regulators” “We do not believe the information in your email is accurate.”

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Company is the largest coal importer into India, supplying to most of the PSU and private companies, they have been under the watch list of DRI for their coal import business in India, they have multiple yards for coal Storage in India. This is not the first time when company is under the investigation. Company's name cropped in various controversies in countries like Mexico, Nigeria and China.