Sasikala’s nephew slapped with Rs 31 cr penalty

Dinakaran was detained on February 7, 1996, in Chennai under COFEPOSA for the alleged transactions in 1994. He was lodged in Central Prison, Chennai, and is now out on bail. The charges had come up for adjudication before ED’s Special Director Kala. Kala ordered penalty payment for the investments made without RBI permission, sources said.

Dinakaran’s appeal against this order is to come up before the FERA board shortly. If the board rejects it, he could appeal to the SC. Dinakaran’s prosecution proceedings are pending with the Economic Offences Court in Chennai. The penalty has been levied according to departmentalproceedings. Dinakaran has been prosecuted for acquiring US dollars from non-authorised dealers in foreign exchange, and for depositing the foreign exchange in the current account of Dipper Investments Ltd with Barclays Bank, Sutton, London. He has also been charged with making payments totalling over $ 1.04 crore, without the general or special exemption of RBI, to the credit of Dipper Investments Ltd, a company registered in British Virgin Islands. The firm was said to operated by him.

Thirteen drafts, allegedly sent by Dinakaran, were credited to the account of Dipper Investments Ltd, according to the charge against him. Thereafter, 43,23,557 pounds were transferred to a solicitor’s firm, Meer Care and Desai, London, 90,000 pounds to an account of Westback Ltd, and 23,685 pounds to an account in Bank of Ireland.