Jaya8217;s worries

It has taken the ED almost three years to probe charges of foreign exchange violations committed by Sasikala, Dinakaran and Bhaskaran. The first complaint was filed on March 19, 1996 and the last on March 27 this year.

Before thecomplaints were filed in courts, show-cause notices for violations under section 8i and 9 1a were sent to them.

Dinakaran, according to the adjudication order passed by the ED on Februrary 6, had floated front companies in Singapore and Malaysia and transferred huge sums of foreign exchange without seeking permission from the Reserve Bank of India RBI.

Two transactions, one for 1,04,93,313 and the other for Aring;ldquo;44,37,242 were probed by the ED and penalties amounting to Rs 31 crore imposed. Dinakaran has challenged the order and the case is now before the FERA board in New Delhi. Sources say the penalty is one of the highest imposed on an individual by the ED.

Sasikala and Bhaskaran are facing scrutiny by the ED for foreign transactions done by them between 1994-95 as the proprietors of the JJ TV. Sasikala is named in the complaints as JJ TV8217;s chairperson and Bhaskaran one of its directors. The ED8217;s case against them is again that the foreign exchange transactions done either by them or theirnominees were contravening FERA rules and that permission from the RBI had not been sought.

The first batch of transactions were made by JJ TV to parties in America for satellite uplinking facilities. Five payments 8212; for 6.8 lakh, 10 lakh, 3.6 lakh and 6.8 lakh and 10.5 lakh 8212; have been traced by the ED and two separate complaints filed against Sasikala and Bhaskaran.

From Feburary 1995 onwards, uplinking charges were paid by JJ TV to Singapore Telecom and then to the Soviet company, Intersputnik. Show-cause notices were sent for transactions of Singapore 1,36,094 and 45,000 and the final order of penalty is awaited. Besides this, a case has also been filed against Bhaskaran for illegally possessing 14,155 Malaysian Ringgits.

Sources say while there was no question of the ED going 8220;slow8221; on the Chennai cases, the failure of the Government to appoint a Special Director in the ED headquarters in New Delhi has considerably hampered progress. The adjudication order against Dinakaran was passed byformer Special Director, A.P. Kala in Feburary this year. However, one month later Kala was transferred to the Directorate of Revenue Intelligence. Since no replacement was found, the other Special Director, M.C. Joshi was given supervision of the Chennai cases and the investigations lost momentum. With Joshi being asked to officiate as Director, the ED bosses will have even less time to adjudicate the controversial cases.