ED seizes estate shares of late Goa mining baron Anil Salgaocar

In a statement, the ED said, “…the entire shareholding of late Anil Salgaocar which has been transferred to his Estate, in all 33 companies which varies from .1 percent to 99.9 percent has been seized by ED. These said 33 companies own 441 immovable properties located mainly in Goa and a few in Mumbai and Karnataka.”

The agency said that an investigation against Salgaocar was initiated on the basis of the Panama Papers leaks and Pandora Papers leaks, where it was alleged that Salgaocar had incorporated multiple BVI (British Virgin Islands) companies.

The ED said that investigation revealed that Salgaocar owned iron ore mines in Goa and Karnataka and the iron ore produced by these mines were sold/exported through his Indian group companies exclusively to the SPVs (Special Purpose Vehicle) in BVI and Singapore. “These SPVs were not declared before Indian authorities and they acted as trading companies indulging in sale of iron ore produced in India to China which resulted in profit shifting outside India,” the ED said.

The five BVI companies of Salgaocar derived profit amounting to around USD 690,650,641 (approximately Rs 5,718 crore) through Salgaocar’s iron ore trading activities and the same was not declared before the Indian authorities, the agency said.

“Hence by acquiring foreign exchange and holding assets outside India, late Anil Salgaocar contravened the provisions of section 4 of FEMA, 1999 for a total amount of USD 69,06,50,641 (approximately Rs 5,718 crore),” ED said.