CHENNAI: The Enforcement Directorate (ED) on Friday issued orders to seize properties worth Rs 8.6 crore belonging to Gautham Sigamani, DMK leader and Kallakurichi MP, for contravening provisions of the Foreign Exchange Management Act (FEMA).
As per section 37A of FEMA, if any foreign exchange, foreign security or any immovable property situated outside India is suspected to have been held in contravention to Sec 4, the ED is empowered to seize the value equivalent situated within India of such foreign exchange, foreign security or immovable property.
Accordingly, immovable properties in the form of agricultural lands, commercial and residential buildings in TN and movable properties in the form of bank balances and shares totalling Rs 8.6 crore held by the MP have been seized.
According to an ED statement, in March 2008, Sigamani made overseas investment of $1,00,000 (Rs 41,57,225) in acquiring 2.45 lakh shares of PT Excel Megindo, Jakarta, and $55,000 (Rs 22,86,924) in Universal Business Ventures, UAE, without RBI approval. He also failed to repatriate the profits amounting to Rs 7.05 crore earned by him from Universal Business Ventures, for the period between financial year 2008-09 to 2012-13 and continued to hold the same abroad till date in contravention of Sec 4, r/w Sec 8.
He also failed to repatriate the balance amount of 6,04,783 Dirhams (Rs 90.20 lakh) lying in the bank account of Universal Business Ventures, as on December 31, 2012, the statement added.