ED orders seizure of Mumbai-based properties worth Rs 32.38 cr under FEMA

The Enforcement Directorate (ED) has ordered the seizure of properties having an equivalent value in India to the extent of Rs 32.38 crore and filed a complaint against a woman named Jaya Patel before the competent authority under Foreign Exchange Management Act (FEMA), 1999, for illegally acquiring properties abroad.

The order of two properties in Mumbai has been given under Section 37A of FEMA and the complaint has been filed with a prayer for confirming order of seizure of equivalent value of property in India.

"Investigation was conducted under FEMA, on the basis of specific information that Jaya Patel of Mumbai has illegally amassed properties in foreign countries. Searches were conducted at the residential and office premises of Jaya Patel and her associate, which resulted into seizure of incriminating documents about the illegal acquisition of undisclosed foreign assets," read a statement by ED.

Investigation under FEMA revealed that Jaya Patel is associated with Ivory International Properties Ltd., a company registered in British Virgin Islands, the ED said.

"She is only having a 1$/GBP share of Ivory International Properties Ltd. However she is the beneficial owner of a) Flat at Chelsea Embankment, London valued at GB Pound 15,25,000 and b) Central Park, New York, USA, valued at USD 25,60,000 both acquired through Ivory International Properties Ltd," the statement added.

Moreover, it stated that the investigation revealed that Ivory International Properties Ltd., mortgaged the said real estate properties to obtain loan and Jaya Patel had signed as co-borrower in mortgage loan application form.

"Jaya Patel failed to explain the source of funds for the acquisition of these properties in the US and the UK. The funds to acquire these overseas properties have been illegally transferred by violating Sections 3(a) and 3(b) of FEMA," the statement said.

Further investigation of illegal transfer of money outside India to acquire properties is under progress.