ED notice to NRI businessman Thampi for violating FEMA

The Enforcement Directorate issued a show cause notice to NRI businessman C C Thampi and his real estate firms.

Published: 24th February 2017 08:55 PM  |   Last Updated: 24th February 2017 10:25 PM   |  A+A-

By Express News Service

NEW DELHI: The Enforcement Directorate (ED) on Friday issued a show cause notice to NRI businessman C C Thampi and his real estate firms for alleged violation of foreign exchange laws to the tune of over Rs 288 crore in acquisition of agricultural and other land in the national capital and NCR.
 
“ED showcauses Thampi of Holiday Group, an NRI for FEMA contravention in purchasing agricultural & other land,” the agency tweeted.
           
The agency had registered a case under the Foreign Exchange Management Act (FEMA) against Thampi last year. Besides Thampi, the agency has issued show cause notice to Holiday City Centre Pvt. Ltd., Holiday Properties Pvt. Ltd., and Holiday Bekal Resorts Pvt. Ltd.
 
In a statement, the agency said, "Thampi, an NRI, had acquired huge agricultural land mass in Palwal and Faridabad districts of Haryana in the name of his company Holiday City Centre Pvt Ltd by circumventing the prescribed law of land and in contravention of extant provision of FEMA."
           
"Pursuant to a complaint, investigation was initiated, which revealed that Thampi was residing outside India and he had advanced unsecured loans to his three companies which was later converted into equity in his name and in the name of his family members in these companies," the statement further said.
           
The ED said Thampi had acquired huge tracts of agricultural land in Palwal, National Capital Region and Gautam Buddha Nagar (Noida) in Uttar Pradesh through the funds routed through the three companies.
           
"The agricultural land purchased by Thampi through the above-mentioned companies in contravention of the relevant provisions of FEMA has also been proposed therein for confiscation to the Central government account. The FEMA contravention identified in the show cause notice is over Rs 288 crore," it said, adding investigation is underway.”
           
Violations under the FEMA are not considered criminal in nature and the agency is only entitled to slap fines and penalties AND the accused cannot be arrested.

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