ED issues notice to C.C. Thampi of Holiday Group for contravention of provisions

Enforcement Directorate on Friday issued show cause notice dated February 16, 2017 to CC Thampi and his three companies including Holiday City Centre, Holiday Properties, and Holiday Bekal Resorts Pvt. Ltd respectively for contravention of provisions of section 6 (3) (b), 6(3)(e), 6(3)(f), 6(3)(i) read with Section 47(3) and Section 6(6) of Foreign Exchange Management Act,1999 for the aggregate amount of Rs. 288 crore.

CC Thampi, an NRI had acquired agricultural land in name of his company Holiday City Centre by circumventing the prescribed law of land and in contravention of extant provision of Foreign Exchange Management Act,1999.

In pursuant to complaint, investigation was initiated, which revealed that Thampi was a person resident outside India and he had advanced unsecured loans to his three companies Holiday City Centre, Holiday Properties and Holiday Bekal Resorts, which was later on converted into equity in his name and in the name of his family members in these companies.

By using the said funds he had acquired huge agricultural land mass in Palwal, NCR and Gautam Buddha Nagar, UP through the above mentioned companies, which he otherwise would not have been able to purchase, being a person resident outside India.

The agricultural land purchased by C.C. Thampi through the above mentioned companies in contravention of the relevant provisions of FEMA,1999 has also been proposed therein for confiscation to the Central Govt. Account.