CHENNAI: The Directorate of Enforcement (ED) on Friday said it has taken possession of 100% shares of MGM Maran and MGM Anand in four MGM group firms and 3.31% stake in Tamilnad Mercantile Bank (TMB) under the provisions of the Prevention of Money Laundering Act (PMLA).
ED has invoked the provisions of Section 8(4) of PMLA and taken possession of the assets on Thursday. The four MGM group firms are Southern Agrifurane Industries, Anand Transport, MGM Entertainment, MGM Diamond Beach Resorts. The 3.31% share represents 52,39,959 equity shares in the TMB.
Maran was Chairman of TMB during 2007. As per ED, during his tenure along with other directors, officials of the TMB were accused of facilitating a deal of 23.60% TMB share sale from Indian shareholders to unauthorised overseas persons. It also accused Maran of acquiring undisclosed foreign assets of Rs 293.91 crore directly during the same period. Such undisclosed investments were without the approval of RBI, as well as from unexplained and highly dubious sources, ED said in a statement.
“ED investigation revealed MGM Maran, soon after being subjected to ED investigation, started removing his wealth to outside India with sole objective to keep the same out of the reach of Indian law enforcement agencies in the garb of overseas direct investments (ODI) and in pursuance of the same had got Cyprus citizenship in 2016.”
As per the provisional attachment Order dated December 23, 2022, ED attached the entire shareholding of both MGM Maran and MGM Anand in all prominent MGM Group of companies in India, lands and buildings in Southern Agrifurane Industries Pvt Ltd, along with TMBL shares. Further investigation is under progress in this case.
In October 2022, Southern Agrifurane Industries filed a writ petition against ED proceedings at the Madras High Court and obtained an interim stay on the proceedings. Directorate of Enforcement has provisionally attached assets worth Rs 205.36 crore of Maran and Anand and their company, Southern Agrifurane Industries, under PMLA after the high court dismissed a writ petition filed by the company.
Maran acquired Rs 293 cr foreign assets: ED
Enforcement Directorate also accused Maran of acquiring undisclosed foreign assets of Rs 293.91 crore directly during the same period. Such undisclosed investments were without the approval of the Reserve Bank of India, as well as from unexplained and highly dubious sources, ED said in a statement