Karnataka HC dismisses Genpact's plea against ED seizure of Gurugram office

BENGALURU: The Karnataka High Court has dismissed Genpact India's writ petition challenging the Enforcement Directorate's (ED) seizure of its Gurugram head office in a case involving alleged round-tripping of about Rs 7,800 crore through transactions with overseas group entities.

The court vacated its interim stay on the seizure order issued in February 2026, but said Genpact could continue its business operations from the property. The company cannot transfer, pledge or create third-party rights over it.

The state's high court said the order contained sufficient material for the ED officer to form a preliminary belief under Section 37A of the Foreign Exchange Management Act (FEMA). This is the latest development in the long-standing case of the US-based BPM firm's consolidation of its Indian operations through Empower Research Knowledge Services. In 2015, Empower received funds through foreign direct investment and Rs 4,600 crore of non-convertible debentures subscribed to by Genpact Luxembourg. The funds were used to acquire Genpact India, following which the two entities merged.


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The ED alleges that the resulting entity repaid about Rs 7,800 crore, including principal and interest, to Genpact Luxembourg between 2018 and 2023 from the reserves of the Indian business. It has claimed that the transactions amounted to round-tripping and violated Section 4 of FEMA, which restricts Indian residents from holding foreign exchange, securities or assets outside India.

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Genpact argued that the transactions were part of a business reorganisation, had been examined by tax authorities and did not involve round-tripping. The court said tax and FEMA proceedings dealt with different questions and that the tax rulings did not automatically invalidate the ED's inquiry. "The merger of Empower and Genpact India could not withstand the ED's scrutiny," said Amit Maheshwari, managing partner at AKM Global, adding that the court has upheld the seizure of properties under Section 37-A, leaving Genpact to agitate its rights and contentions before the Competent Authority empowered to confirm the seizure.