ED notice to Thampi, 3 Holiday Group firms

FEMA violation of ₹288 crore alleged

The Enforcement Directorate has served show-cause notices on NRI C.C. Thampi of the Holiday Group and three of his companies for alleged violation of the Foreign Exchange Management Act (FEMA), involving transactions of ₹288 crore.

According to the ED, the notices have been served on Mr. Thampi, Holiday City Centre Pvt. Ltd., Holiday Properties Pvt. Ltd. and Holiday Bekal Resorts Pvt. Ltd. The NRI entrepreneur had acquired agricultural land in the name of his company Holiday City Centre Pvt. Ltd allegedly in violation of the FEMA provisions.

According to the agency, Mr. Thampi — as a person residing outside India — had advanced unsecured loans to his three companies, which were later on converted into equity in his name and in the name of his family members in these companies.

Land around NCR

“By using the said funds, he had acquired huge agricultural land mass in Haryana’s Palwal, the National Capital Region and Gautam Buddha Nagar in Uttar Pradesh, through these companies, which he could not have otherwise purchased as he resided outside India. The agricultural land purchased by Mr. Thampi through these companies has also been proposed for confiscation to the Central government’s account,” said an ED official.

The Directorate had questioned Mr. Thampi in December last year, after he did not get any relief from the Kerala High Court on the look-out circular issued against him. The businessman runs educational institutions and has varied business interests in the United Arab Emirates and India.