NEW DELHI: ED on Wednesday stated it has imposed a penalty of Rs 908 crore on DMK’s Lok Sabha MP Jagathrakshakan in a case of FEMA violations, and his properties value over Rs 89 crore, which have been seized earlier, has been confiscated.
The company has accused Jagathrakshakan, a businessman from Tamil Nadu and an MP, his relations and associated Indian entities in its FEMA present trigger discover, equal to a chargesheet.
“Investigation resulted within the passing of seizure order (of 11 Sept, 2020) when it comes to Part 37A of FEMA, affecting seizure of varied movable and immovable properties held within the identify of Jagathrakshakan and his relations valued at round Rs 89.1 crore,” the company stated.
After conclusion of authorized proceedings, the properties have been confiscated, and a penalty of Rs 908 crore has been levied by an adjudication order issued on Aug 26, the company stated.
“Upon examination of the alleged violations by the noticees vis-a-vis the written replies filed by them, it was discovered that the alleged (FEMA) violations have been clearly proved. In conclusion, a penalty was levied with respect to every of the alleged violations,” ED stated.
ED filed a FEMA case towards the accused in Dec 2021. Jagathrakshakan, his relations and associated firm have been accused of “violations of varied FEMA provisions, significantly in respect of their funding of Rs 42 crore right into a shell firm integrated in Singapore throughout 2017, and acquisition/holding of shares/equities in Singapore and its subsequent switch amongst the relations in defiance of extant provisions of FEMA”.
Jagathrakshakan and his relations have been additionally accused of unlawful funding of Rs 9 crore in a Sri Lankan entity.
“A present trigger discover was issued towards the noticees on Dec 22, 2021 and alternative was supplied for private listening to the place their counsel represented them,” ED has stated. The accused appealed earlier than Madras excessive court docket the place the division bench, after listening to each side, dismissed their appeals by an order of July 23 this 12 months.
The company has accused Jagathrakshakan, a businessman from Tamil Nadu and an MP, his relations and associated Indian entities in its FEMA present trigger discover, equal to a chargesheet.
“Investigation resulted within the passing of seizure order (of 11 Sept, 2020) when it comes to Part 37A of FEMA, affecting seizure of varied movable and immovable properties held within the identify of Jagathrakshakan and his relations valued at round Rs 89.1 crore,” the company stated.
After conclusion of authorized proceedings, the properties have been confiscated, and a penalty of Rs 908 crore has been levied by an adjudication order issued on Aug 26, the company stated.
“Upon examination of the alleged violations by the noticees vis-a-vis the written replies filed by them, it was discovered that the alleged (FEMA) violations have been clearly proved. In conclusion, a penalty was levied with respect to every of the alleged violations,” ED stated.
ED filed a FEMA case towards the accused in Dec 2021. Jagathrakshakan, his relations and associated firm have been accused of “violations of varied FEMA provisions, significantly in respect of their funding of Rs 42 crore right into a shell firm integrated in Singapore throughout 2017, and acquisition/holding of shares/equities in Singapore and its subsequent switch amongst the relations in defiance of extant provisions of FEMA”.
Jagathrakshakan and his relations have been additionally accused of unlawful funding of Rs 9 crore in a Sri Lankan entity.
“A present trigger discover was issued towards the noticees on Dec 22, 2021 and alternative was supplied for private listening to the place their counsel represented them,” ED has stated. The accused appealed earlier than Madras excessive court docket the place the division bench, after listening to each side, dismissed their appeals by an order of July 23 this 12 months.
