The Enforcement Directorate (ED) on Friday issued orders to seize financial assets to the tune of Rs 8.6 crore belonging to DMK Gautham Sigamani. The orders were issued under Section 37A of Foreign Exchnage Management Act (FEMA) for allegedly acquiring foreign securities illegally and not repatriating foreign exchange earned abroad.
According to ED, Sigamani allegedly acquired foreign security without RBI approval. During the course of investigation, ED has claimed, it was revealed that in March 2008, Sigamani made overseas investment of USD 1 lakh (Rs 41.57 lakh then) in acquiring 2.45 lakh shares of M/s PT Excel Megindo, Jakarta and USD 55,000 (Rs 22.86 lakh then) in M/s Universal Business Ventures, UAE without RBI approval. This ED has said was in contravention of Section 4 of FEMA.
Sigamani, ED has said, failed to repatriate profits amounting to Rs 7.05 crore earned by him from Universal Business Ventures in the period of 2008-09 to 2012-13 and continued to hold the same abroad till date. He also failed to repatriate the 6.04 lakh Dirhams lying in the bank account of Universal Business Ventures as on December 31, 2012 and continues to hold the same abroad till date.
ED has seized properties held by DMK MP Gautham Sigamani to the tune of Rs 8.6 crores equivalent to the value of illegally accquired foreign security and non-repatriation of foreign exchange earned abroad till date in contravention of section 4 of FEMA. @IndianExpress pic.twitter.com/rXwZrUzaa8
— Janardhan Koushik (@koushiktweets) October 16, 2020
“As per the provisions of section 37A of FEMA, if any foreign exchange, foreign security or any immovable property situated outside India is suspected to have been held in contravention of section 4 of FEMA, ED is empowered to seize value equivalent situated within India of such foreign exchange, foreign security or immovable property,” ED said in a statement.
Accordingly, it added, immovable properties in the form of agricultural lands, commercial and residential buildings, etc in Tamil Nadu and movable properties in the form of balances in bank accounts and shares totalling to Rs 8.6 crore held by Sigamani have been seized by it.
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