The Enforcement Directorate has seized properties estimated at ₹48.87 crore in the form of immoveable assets of Ahmedabad-based Sintex Industries Ltd. in connection with a Panama Papers case.
The seizure has been made under Section 37A of the Foreign Exchange Management Act (FEMA).
The probe pertains to Amit and Rahul Patel, whose names had figured in the Panama Papers with respect to their alleged stakes or interests in Amarange Inc. in the British Virgin Islands.
Overseas investment
Investigations revealed that between May 26, 2007, and July 27, 2009, Sintex Industries had remitted €73.05 million as “overseas direct investment” to Sintex Holding BV, Netherlands, (WOS), having one of its directors as Amit Patel, said the ED.
The directorate found that Sintex Holding BV had allegedly created a wholly owned subsidiary named Amarange Inc., which was incorporated in the British Virgin Islands. Amit and Rahul were its directors.
It is alleged that the funds remitted as overseas direct investment were used by Sintex Holding BV for acquiring an about 256-square-metre property in Singapore in the name of Amarange Inc. for 7.9 million Singapore dollars (SGD). The ED alleges that in 2009, Sintex Holding BV had attempted to sell Amarange Inc. to one Hanca Investment Ltd. in the British Virgin Islands for $8.2 million and for that purpose, the company received an initial amount of $3 million.
“Earlier this year, the Singapore property was sold for 6.25 million SGD and consequently, Sintex Holding BV dissolved Amarange Inc on August 8, 2017,” said an ED official.
