CHENNAI: The properties of DMK MP S Jagathrakshakan and his family members, worth Rs 89.19 crore, were seized by the Enforcement Directorate (ED) for acquiring foreign securities in a Singapore based company in contravention of Section 4 of the Foreign Exchange Management Act (FEMA).
It is learnt that the ED launched a probe after being tipped off that Jagathrakshakan had acquired foreign securities by violating the provisions of FEMA. Investigations revealed that on June 15, 2017, Jagathrakshakan and his son Sundeep Aanand had subscribed to 70,00,000 shares and 20,00,000 shares respectively (valued at Singapore $ 1/- per share) of Silver Park International Pte. Ltd., Singapore, without obtaining the approval of the Reserve Bank of India.
Further, these unauthorized acquired shares were transferred by Jagathrakshakan to his family members in contravention of Section 4 of FEMA read with Regulation 3 of the Foreign Exchange Management (Transfer or Issue of Foreign Security) Regulations, 2004.
Immovable properties in the form of agricultural lands, plots, houses etc in Tamil Nadu and movable properties in the form of balances in bank accounts and shares totaling to Rs 89.19 crore held by Jagathrakshakan and his family members were seized by the ED under the provisions of Section 37A of FEMA.
As per the provisions of section 37A of FEMA, if any foreign exchange, foreign security or immovable property, situated outside India, is suspected to have been held in contravention of section 4 of FEMA, the Enforcement Directorate is empowered to seize an equivalent value, situated within India, of such foreign exchange, foreign security or immovable property. Further investigation in the case is in progress.