Rana Inder Partap Singh, son of Cabinet minister Rana Gurjit Singh who has submitted his resignation, appeared before the Enforcement Directorate (ED) officials on Wednesday in a case of alleged violation of Foreign Exchange Management Act (FEMA) by Rana Sugars Limited, a company owned by the minister’s family. He spent nearly seven hours in the ED office where he landed at ED office at 12:35 pm and came out around 7:15 pm.
In 2005-06, Rana Sugars Limited, through its shareholders in foreign countries, had raised loans of Rs 100 crore from foreign banks, allegedly without informing the same to SEBI and RBI, which is a violation of FEMA. The ED says the money was raised by floating foreign shares through Global Depository Receipts (GDRs) and such shares were first kept in a bank of Portugal’s Madeira Island and then transferred to Rana Sugars Limited’s bank account in India.
Accompanied by five persons, including his staff and friends, Rana Inder Partap, who is the MD of Rana Sugars Limited, stopped for a few minutes to reply to media queries before leaving the ED office premises. Asking what exactly ED had questioned him about today, he said they had queries pertaining to the money raised through GDRs, to which he had replied in writing.
He said funds were raised through the automatic route for which there was no need to take RBI’s prior permission. He said the information was required to be given to the RBI only later, which was done and a copy of the same was submitted to the ED today. “They asked us whether we had provided this information to the RBI earlier, to which I replied in the affirmative and provided them a copy,” he said.
Rana Inder Partap Singh refused to answer queries related to his father, saying he would not answer political questions. Asked of he had been called again for questioning, he said he had not been told so today.