Panama Papers: ED seizes properties worth Rs 41.64 crore of Zavareh Poonawalla

According to the ED investigation, Zavareh Soli Poonawalla and his family members had remitted foreign exchange abroad by mis-utilizing the provisions of Liberalized Remittance Scheme (LRS) scheme.

His name was found in the Panama Papers revelations regarding off-shore entities.

“They used the maximum permissible limit and from the year 2011-12, they remitted money abroad via mis-declarations under the pretext of ‘family maintenance and self-maintenance’ etc. However none of their family members was residing abroad or holding NRI status,” ED stated on Monday.

The entire funds remitted by Zavareh Soli Poonawalla and his family members under LRS were invested into M/s Stallast Limited based in BVI (British Virgin Islands).

The funds remitted by Zavareh Soli Poonawalla and his family members were utilized by M/s Stallast Limited to purchase four properties at UK. These properties include four apartments at Paddington, London, the agency stated in a statement.

Multiple FEMA contraventions were seen in these transactions. Apart from mis-declarations in the remittances, Zavareh Soli Poonawalla and his family members wrongly claimed these investments as foreign portfolio investments, but in reality, the foreign entity was completely controlled by them and thus, they did ODI (overseas direct investment) in a foreign WoS (Wholly Owned Subsidiary) without due permission of the RBI, the ED said.

The foreign assets were not declared to RBI. They continued to hold above foreign assets till date and are in continuous enjoyment of the same, the agency stated in a statement.

The properties abroad were acquired through the funds remitted under LRS to avoid reporting requirements to RBI. Therefore, the equivalent value of properties held by them in India have been seized under the provisions of Section 37A of FEMA, the ED said.