FEMA Case: ED seizes immovable assets worth Rs 22-crore of Kapurthala Congress MLA R G Singh-owned Rana Sugars

The Enforcement Directorate (ED) recently seized immovable properties worth Rs 22.02 crore belonging to Punjab-based Rana Sugars — owned by Kapurthala Congress MLA Rana Gurjit Singh, and his son and Sultanpur Lodhi MLA Inder Partap Singh — for the alleged violation of the Foreign Exchange Management Act (FEMA).

“ED initiated investigation under the provisions of FEMA, 1999, against M/s Rana Sugars Ltd, its promoters, Directors & others in connection with (the) issuance of Global Depository Receipts (GDRs) and non-utilisation of entire GDR proceeds for its intended bona-fide purpose,” the Central agency said in a statement Thursday.

“ED investigation revealed that out of total GDR receipts, M/s Rana Sugars Ltd did not repatriate (the) entire GDR proceeds to India and held GDR proceeds to the tune of $2.56 Million (Rs 22.02 crore) outside India in contravention of Section 4 of FEMA,1999. Further investigation is under progress,” it added.

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Earlier, the Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 63 crore on Rana Sugars for the alleged diversion of funds to its conduit and entities.