AIADMK deputy general secretary T.T.V. Dhinakaran on Wednesday appeared before the Additional Chief Metropolitan Magistrate(ACMM), Economic Offences-II, in connection with a case filed by the Enforcement Directorate (ED) for violation of provisions of the Foreign Exchange Regulation Act (FERA).
Following a request from his counsel, the ACMM S. Malarmathy adjourned the case to March 24. In 1996, the Special Director, Enforcement Directorate, New Delhi, initiated adjudication proceedings against Mr. Dinakaran for acquiring foreign exchange totalling $1,04,93,313 from persons other than authorised dealers, violating the provisions of FERA.
The case against Mr. Dhinakaran is that he illegally obtained the foreign exchange and deposited it in the current account of Dipper Investments Ltd., a company incorporated in the British Virgin Islands, with Barclays Bank, Sutton, United Kingdom and thereby lent the said foreign exchange illegally.
He transferred and also made payments of foreign exchange to Meer, Care and Desai, Westback Ltd and to an undisclosed account in the Bank of Ireland.
Originally, he was found guilty and was asked to pay a penalty of ₹31 crore. On an appeal, the FERA Board confirmed the order of ED but reduced the penalty to ₹28 crore. Since he failed to pay the fine, the Enforcement Directorate initiated the present criminal proceedings against him.
