The Enforcement Directorate (ED) on Wednesday said it has seized Mack Soft Tech Private Limited (MSTPL)-owned Q-City Tech Park consisting of 2,500 square yards of land and about 245,000 square feet of office building space in Hyderabad, cumulatively worth Rs 86.38 crore.
The seizure of Mach Soft Tech's assets was done under the provisions of Section 37A of Foreign Exchange Management Act, 1999 (FEMA), in lieu of foreign assets illegally held abroad in contravention of Section 4 of FEMA, according to ED. The seized tech park is situated in Gachibowli IT corridor in the city.
ED initiated the investigation on the basis of information that MSTPL remitted huge funds in contravention of FEMA. During the course of investigation, it was revealed that MSTPL illegally transferred foreign exchange to the tune of $12.5 million (equivalent to Rs 62.08 crore) to Orient Guide Investments Limited, Hong Kong under the guise of purchase of a non-existent fake software license.
Further, during the period from November, 2011 to December, 2016, MSTPL transferred $3.98 million (equivalent to Rs 24.30 crore) to Senat Legal Consultancy FZ LLC, UAE and Cresco Legal Consultancy FZ LLC, UAE in the name of legal services.
"The above foreign outward remittances on the pretext of purchase of software license and legal services were made by MSTPL with a view to siphon off funds from India and park them abroad," ED said in a statement.