The ED contended that the DMK MP had allegedly illegally acquired, held and transferred foreign security to his family members from a Singapore-based firm.
The Enforcement Directorate (ED) has issued orders to seize properties worth Rs 89.19 crore held by DMK MP and former Union Minister of State S Jagathrakshakan and his family members. The ED passed the orders under Section 37A of Foreign Exchange Management Act, 1999 (FEMA).
According to the order issued by the ED, the MP had allegedly illegally acquired, held and transferred foreign security to his family members from M/s Silver Park International Pte. Ltd., Singapore in contravention of Section 4 of FEMA (Foreign Exchange Management Act). Based on this information, the ED has ordered the seizure of the equivalent properties of Jagathrakshankan and his family in India.
The release from ED said, “Based on the information received by ED that S Jagathrakshakan, had acquired foreign security by violating the provisions of FEMA, the matter was taken up for detailed investigation. During the course of investigation under the provisions of FEMA, it has transpired that on June 15, 2017, S Jagathrakshakan and his son Sundeep Aanand had subscribed to 70,00,000 shares and 20,00,000 shares respectively (valued at Singapore $ 1/per share) of M/s. Silver Park International Pte. Ltd., Singapore, without obtaining the approval of Reserve Bank of India.”
The MP also allegedly transferred the shares to his family members in violation of Section 4 of FEMA. “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,” the ED said.
As per provisions under Section 37A of FEMA, if any foreign exchange, foreign security or immovable property, situated outside India, is suspected to have been held in contravention of section 4 of FEMA, then the ED is empowered to seize value equivalent within India, of such foreign exchange, foreign security or immovable property.
Accordingly, the ED said, “Immovable properties in the form of agricultural lands, plots, houses 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 ongoing.
Source: The News Minute