Chennai: The Directorate of Enforcement (ED) on Saturday last attached Rs 89.19 crore worth of properties belonging to DMK Lok Sabha member S Jagathrakshakan and his family members under Foreign Exchange Management Act (FEMA), 1999.
Orders under Section 37A of (FEMA) seizing properties held Jagathrakshakan and his family members to the tune of Rs 89.19 crores, equivalent to the value of the illegally acquired, held and transferred foreign security in Singapore-based company in contravention of Section 4 of FEMA.
Accordingly, immovable properties in the form of agricultural lands, plots, houses etc in Tamilnadu and movable properties in the form of balances in bank accounts and shares totalling Rs 89.19 crores held by Jagathrakshakan, and his family members were seized under Sec 37A of FEMA.
Based on the information received by ED that he had acquired foreign security by violating the provisions of FEMA, the ED probe revealed taht on 15 June, 2017 Jagathrakshakan and his son Sundeep Aanand had subscribed to 70,00,000 shares and 20,00,000 shares respectively (valued at one Singapore dollar per share) of M/s. Silver Park International Private Ltd., Singapore, without obtaining the approval of Reserve Bank of India.
Further, these unauthorised acquired shares were transferred by 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, was suspected to have been held in contravention of Section 4 of FEMA, the ED was empowered to seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property.
Accordingly, properties worth Rs 89.19 crore was seized by the ED under the provisions of FEMA. Further investigation in the case is in progress.