New Delhi: Directorate of Enforcement(ED) has issued seizure order under Section 37A of Foreign Exchange Management Act, 1999 (FEMA), seizing properties held by S. Jagathrakshakan, Member of Parliament (Lok Sabha), & his family members to the tune of Rs. 89.19 Crores, equivalent to the value of the illegally acquired, held and transferred foreign security in Singapore based company in contravention of Section 4 of FEMA.
Based on the information received by ED that S. Jagathrakshakan, had acquired foreign security by violating the provisions of FEMA, the matter was taken up for detailed investigation. During the course of investigation under the provisions of FEMA, it has transpired that on 15/06/2017,Sri S. Jagathrakshakan & his son Sh. Sundeep Aanand had subscribed to 70,00,000 shares & 20,00,000 shares respectively (valued at Singapore $ 1/- per share) of M/s. Silver Park International Pte. Ltd., Singapore, without obtaining the approval of Reserve Bank of India.
Further, these unauthorized acquired shares were transferred by Sri S. Jagathrakshakan to his family members in contravention of Section 4 of FEMA read with Regulation 3 of the Foreign Exchange Management (Transfer or Issue of Foreign Security) Regulations, 2004.
As per the provisions of section 37A of FEMA, if any foreign exchange, foreign security or any immovable property, situated outside India, is suspected to have been held in contravention of section 4 of FEMA, the Enforcement Directorate is empowered to seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property.
Accordingly, immovable properties in the form of agricultural lands, plots, houses etc in Tamil Nadu and movable properties in the form of balances in bank accounts & shares totaling to Rs.89.19 Crores held by S. Jagathrakshakan, & his family members are seized by the Directorate under the provisions of Section 37A of FEMA.
Further investigation in the case is in progress.
