Nagpur: The L-7 Hitech Group, headquartered in the city, has come under intense scrutiny after it emerged that the company made significant contributions totaling 22 crore in electoral bonds during October 2023. This revelation has thrust the company, which has been the subject of investigations by various regulatory bodies including the Income Tax Department, the Enforcement Directorate (ED), and the Securities and Exchange Board of India (SEBI) from 2016 to 2023, back into the spotlight.
Owned by Ravi Agrawal, the L-7 Hitech Group has attracted attention in the past for its involvement in ‘dabba’ trading, a controversial trading practice. In 2016, the company faced police raids, and subsequently, the ED initiated enforcement proceedings based on a case filed by the economic offences wing of the Nagpur city police. However, Agrawal and other accused individuals were later granted bail by the high court, which ruled that the authorities lacked the jurisdiction to take action under the Securities Contract Act, 1956.
Recent developments saw a team of around 200 officers from the Income Tax Department, Mumbai, conduct raids at 17 locations across the city on May 10, 2023, targeting 10 ‘hawala’ and ‘dabba’ traders associated with the L-7 group. Among those targeted were Ravi Agrawal, as well as several ‘hawala’ operators and a chartered accountant.
The offices and residences ‘dabba’ trader Ravi Agarwal, ‘hawala’ operators Gopu Malu, Lala Jain, Paras Jain, Shailesh Lakhotia, Israel Seth, Hemant Tanna, Karni Thawrani, Pyare Khan, and chartered accountant Ravi Wankhede figured in the raids.
The raids were conducted at Lakadganj, Telephone Exchange Square, Wardhaman Nagar, Garoba Maidan, Medical Square and other parts of Nagpur
Of particular interest is the revelation that the L-7 Hitech Group made substantial contributions in electoral bonds over three consecutive days in October 2023. On October 10, the company contributed 9 crore, followed by 8 crore on October 12, and 5 crore on October 13, bringing the total to a staggering 22 crore. According to information provided by the State Bank of India (SBI) to the Election Commission (EC), these contributions were directed towards a political party.
These revelations have raised questions about the source and intent behind such significant contributions, especially considering that they far exceed the donations made by prominent figures in the corporate sector, such as Kiran Mazumdar-Shaw, who donated 6 crore in electoral bonds. The L-7 Hitech Group’s involvement in electoral bond transactions underscores the need for greater transparency and oversight in political funding mechanisms.
