The Enforcement Directorate (ED) has issued an order for seizure of properties worth ₹89.19 crore belonging to former Union Minister and DMK MP S. Jagathrakshakan and his family members.
The agency had undertaken detailed investigation based on information that Mr. Jagathrakshakan had acquired “foreign security” by violating the provisions of Foreign Exchange Management Act (FEMA).
In a release, the agency said that during the investigation it was found that Mr. Jagathrakshakan and his son Sundeep Aanand had subscribed to 70,00,000 shares and 20,00,000 shares respectively (valued at Singapore $1/ per share) of Silver Park International Pte. Ltd., Singapore, without obtaining the approval of the Reserve Bank of India. Further, these unauthorised shares were transferred by Mr. Jagathrakshakan to his family members in contravention of Section 4 of the FEMA, read with regulation 3 of the Foreign Exchange Management (Transfer or Issue of Foreign Security) Regulations, 2004.
As per the provisions of Section 37A of FEMA, if any foreign exchange, foreign security or any immovable property, situated outside India, is suspected to have been held in contravention of Section 4 of FEMA, the ED is empowered to seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property.
Accordingly, immovable properties in the form of agricultural lands, plots and houses in Tamil Nadu and movable properties in the form of balances in bank accounts and shares totalling ₹89.19 crore held by Mr. Jagathrakshakan and his family members were seized by the Directorate under the provisions of Section 37A of FEMA. Further investigation is in progress.
