The Directorate of Enforcement (ED) has issued seizure orders on properties worth Rs 89 crore held by DMK Member of Parliament, Senior S Jagathrakshakan and his family members. The assets are equivalent in value to foreign securities that were illegally acquired from a Singapore-based company in contravention of Section 4 of FEMA. They were then transferred to the MP's family in contravention of FEMA.
Following information received by the ED that Jagathrakshakan had acquired foreign securities in violation of FEMA, the matter was taken up for detailed investigation.
ED said that during the course of investigation under the provisions of FEMA, it has transpired that on June 15, 2017 Jagathrakshakan & his son Sundeep Aanand had subscribed to seven million shares and two million shares, respectively (valued at $1 per share) of Silver Park International Pte Ltd, Singapore, without obtaining RBI approval.
Jagathrakshakan then transferred these sharess 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, said the ED.
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 assets of equivalent value within India.
Accordingly, immovable properties in the form of agricultural land, plots, houses etc in Tamil Nadu and movable properties such as balances in bank accounts and shares totaling Rs 89.19 crore held by Jagathrakshakan and his family were seized by the Directorate under the provisions of Section 37A of FEMA.