ED seizes DMK MP Jagathrakshakan's Rs 89 cr properties in FEMA case

Orders under Section 37A of (FEMA) seizing properties held Mr 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, an official release here said.

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 totalling Rs.89.19 crores held by Mr 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 that on June 15, 2017 Mr 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 unauthorized acquired shares were transferred by Mr 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 today under the provisions of FEMA.

Further investigation in the case is in progress.