CHENNAI: The Enforcement Directorate (ED) on Thursday attached immovable assets worth Rs 8.9 crore of Chennai-based GV Films Limited at Thanjavur, under the provisions of the Foreign Exchange Management Act (FEMA), in connection with siphoning off foreign exchange in the guise of issuance of 6.4 million umber of Global Depository Receipts (GDR) worth Rs 345.6 crore.
Investigation revealed G V Films Limited with an intention to misuse the proceeds of GDR opened an account in Banco Efisa S.A. (Bank), Lisbon, Portugal, for the purpose of handling the GDR proceeds.
GV Films allegedly conspired with Whiteview Trading Corporation, a British Virgin Island Company, by entering into a ‘credit agreement’ with Banco. Whiteview availed a loan of US $40 million for the purpose of subscribing to the GDRs of G V Films Limited.
G V Films entered into an ‘account charge’ agreement with Banco and pledged entire GDR proceeds as collateral against the loan availed by Whiteview. By availing loan, Whiteview Trading Corporation subscribed to the entire 6.4 million number of GDRs of G V Films.
Subsequently, GV Films pledged entire proceedings of US $40 million against the loan availed by Whiteview. By doing so, G V Films Limited has siphoned off the US $40 million equivalent to Rs 172.8 crore. Further investigation is on.