BENGALURU: The Competent Authority (CA), in its order dated January 6, confirmed the seizure of immovable properties worth Rs 17.34 crore of K Mohammed Harris of Mangaluru, under Section 37A of the Foreign Exchange Management Act (FEMA), the Directorate of Enforcement (ED) stated in an official release on Thursday.
The Central agency investigated the case based on information received from the Income Tax (I-T) department. “During the course of investigation, it transpired that Harris of Mukka Group of Companies and a resident of Mangaluru, had acquired foreign assets, foreign exchange and foreign investment/securities in the form of a flat, bank deposits in a foreign bank account and shareholdings in foreign entity valued at Rs 17,34,80,746 in the UAE. This was in violation of the provisions of Section 4 of FEMA,” the ED stated.
As per Section 37A of FEMA, if any foreign exchange, foreign security or immovable property situated outside India, is held in contravention of Section 4 of the Central Act, then the ED is empowered to seize the value equivalent within India of such foreign exchange, foreign security or immovable property.
Accordingly, immovable properties in the form of two residential houses and one industrial plot in Mangaluru, worth Rs 17,34,49,000 belonging to Harris, were seized by the ED, Mangaluru sub zonal office, and a petition was filed before the CA, FEMA, the ED stated.