New Delhi, September 12
The Enforcement Directorate (ED) has ordered seizure of properties value Rs 89.19 crore held by Lok Sabha MP from Tamil Nadu S Jagathrakshakan and his household for alleged violation of the Foreign Exchange Management Act (FEMA).
The ED, in a press release, stated the seizure of the properties was equal to the worth of the “illegally acquired, held and transferred foreign security in a Singapore-based company in contravention of the FEMA”.
Based on the data obtained by the company that Jagathrakshakan had allegedly acquired international safety by violating provisions of the FEMA, the matter was taken up for detailed investigation.
The ED claimed that in the course of the course of investigation beneath provisions of the FEMA, it has transpired that on June 15, 2017, Jagathrakshakan and his son Sundeep Aanand had allegedly subscribed to 70,00,000 shares and 20,00,000 shares, respectively (valued at Singapore greenback one per share) of M/s Silver Park International Ltd, Singapore, “without obtaining the approval of the Reserve Bank of India”.
It stated that these alleged unauthorised acquired shares had been “transferred by Jagathrakshakan to his family members in contravention of the FEMA”.
As per provisions of the Section 37A of the FEMA, if any international alternate, international safety or any immovable property, located outdoors India, is suspected to have been held in contravention of Section four of the FEMA, the Enforcement Directorate is empowered to grab worth equal, located inside India, of such international alternate, international safety or immovable property.
Accordingly, the ED stated, immovable properties within the type of agricultural lands, plots, homes, and many others in Tamil Nadu and movable properties within the type of balances in financial institution accounts and shares totalling Rs 89.19 crore held by Jagathrakshakan and his relations had been seized beneath the provisions of Section 37A of FEMA.
Further investigation into the matter is in progress, the company stated. PTI