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Chennai, September 12, 2020
The Directorate of Enforcement (ED) today said it had issued an order for seizure of properties worth Rs 89.19 crore held by DMK Lok Sabha member S Jagathrakshakann and his family members.
The order has been issued under Section 37A of Foreign Exchange Management Act, 1999 (FEMA), a press release from ED said.
The value of the seized properties is equivalent to the value of the illegally acquired, held and transferred foreign security in a Singapore based-company in contravention of Section 4 of FEMA, it said.
According to the release, the ED, based on information received by it that Jagathrakshakan had acquired foreign security by violating the provisions of FEMA, took up the matter for detailed investigation.
According to the release, during the investigation, it was found that, on June 15, 2017, Jagathrakshakan and his son Sudeep Aanand had subscribed to 70,000 shares and 20,00,000 shares (valued at Singapore $ 1 per share), respectively, of Silver Park International Pte. Ltd., Singapore, without obtaining the approval of the Reserve Bank of India (RBI).
"Further, these unauthorized acquired shares were transferred by 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 and shares totaling to Rs.89.19 crores held by S. Jagathrakshakan and his family members are seized by the Directorate under the provisions of Section 37A of FEMA.
"Further investigation in the case is in progress," the release added.