ELITE INVESTMENT SOLUTIONS Audits under Investigation for Alleged returns from Forex Trading Violations

Noida : In a significant investigation, ELITE INVESTMENT SOLUTIONS, a financial services scheme operating from Noida UP, has come under the scanner of Indian tax authorities for suspected financial irregularities and violations of foreign exchange regulations. As per preliminary findings, the company is allegedly involved in unauthorized forex trading activities—a practice strictly prohibited under Indian law without requisite approvals.

Authorities have frozen all company bank accounts and assets pending the outcome of an ongoing investigation. According to sources familiar with the matter, enforcement and tax officials initiated the probe following alerts regarding suspicious financial transactions and discrepancies in the company’s declared revenue and trade practices.

Prima Facie Evidence of Illegal Forex Trading

Initial reports suggest that both employees and clients of ELITE INVESTMENT SOLUTIONS were actively engaged in unregulated foreign exchange trading with ENCORE CAPITAL which is an offshore forex trading platform belong from outside India.

, which violates the provisions of the Foreign Exchange Management Act (FEMA), 1999. Under Indian law, forex trading is heavily restricted, and individuals or entities must operate only through channels and platforms approved by the Reserve Bank of India (RBI).

Freezing of Indian Entity’s Assets and Suspension of Operations

As a precautionary measure, the Enforcement Directorate (ED), in coordination with the Income Tax Department, has ordered an immediate freeze on all assets held by the company, including operational accounts, investment portfolios, and digital assets. The company's offices have been searched, and electronic records have been seized for forensic examination.

Authorities are currently examining:

- The flow of funds & how huge returns were generating

- The identity of clients involved in the trading activities

- The role of company executives in facilitating unauthorized transactions

- Possible tax evasion and money laundering links

- Potential Legal Consequences

If proven guilty, ELITE INVESTMENT SOLUTIONS executives could face severe penalties under FEMA and the Income Tax Act, including:

Heavy monetary fines

Suspension or cancellation of business licenses

Prosecution of key officials under criminal provisions

Blacklisting of the firm and its directors from future financial operations

In addition, individuals found to be knowingly participating in or promoting illegal forex activities could face personal legal action.

Ongoing Investigation and Widening Net

The investigation, still in its early stages, is reportedly expanding as authorities identify additional entities and individuals linked to the firm. Digital communications, client lists, and transactional logs are being analysed to trace the full extent of the suspected violations.

As the investigation into ELITE INVESTMENT SOLUTIONS deepens, authorities are now turning their focus toward the clients and individuals who knowingly participated in or benefitted from unregulated foreign exchange trading activities. According to officials familiar with the matter, clients of the company may not be treated as mere victims but rather as complicit actors if evidence shows they were aware of the illegal nature of the transactions.

Sources in the Enforcement Directorate (ED) and the Income Tax Department have confirmed that multiple clients have already been identified during the financial audit of the company’s financial and communication records. Some of them are believed to have directly engaged in forex trading through offshore company Encore Capitals, in violation of India’s Foreign Exchange Management Act (FEMA), 1999.

Digital trails, WhatsApp chats, and financial logs reportedly show that clients willingly transferred funds to company or international trading platforms and received returns outside of the traditional banking system.

Clients found to have been actively involved may face:

Fines and penalties under FEMA

Show-cause notices from tax authorities for non-disclosure of foreign income or assets

Investigation under the Prevention of Money Laundering Act (PMLA)

Freezing of individual bank accounts and assets

“In such matters, both the service provider involved banks executive and the participants can be held accountable. People cannot distance themselves from illegal activities just because they weren't the ones running the operation,” the official added.

This is a developing story. More details will be published as they become available.