Eros International’s Mumbai Office Raided by ED in Rs 2,000 Crore Probe

The Enforcement Directorate (ED) conducted search operations at the registered office of Eros International Media Ltd as part of an investigation into an alleged ₹2,000 crore foreign exchange law violation.

According to an official ED statement, the raids were linked to a probe into suspected "fund diversion" by Eros International Media Ltd and other entities under the Eros Group. The agency claims that between FY 2012-13 and FY 2020-21, Eros transferred nearly ₹2,000 crore in content advances to various entities.

The ED alleges that Eros later wrote off a substantial portion of these advances, citing non-recovery due to the COVID-19 pandemic as a reason for a balance sheet cleanup. Investigators suspect that the company used this strategy to inflate its financial records by making advance payments, which were later diverted or round-tripped back. The alleged use of fictitious movie rights purchases was also flagged as a way to conceal these transactions.

In a regulatory filing, Eros International Media Ltd confirmed that the ED had carried out searches under Section 37(3) of the Foreign Exchange Management Act, 1999, at its Mumbai office, which concluded on February 6, 2025. The company stated that it remains fully operational and is cooperating with authorities.

The investigation stems from a Securities and Exchange Board of India (SEBI) inquiry into Eros Group and its promoters over alleged financial misrepresentation and suspected fund siphoning of around ₹2,000 crore.

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