ED slaps ₹908 crore in penalty on Jagathrakshakan for violation of foreign exchange rules
The Hindu Bureau
CHENNAI 29.08.2024
The Enforcement Directorate (ED) has imposed a penalty of ₹908 crore on S. Jagathrakshakan, the DMK MP from Arakkonam, for violation of the Foreign Exchange Management Act (FEMA). The ED passed the order on Monday. It was based on an order dated September 11, 2020, issued under Section 37A of FEMA, for the seizure of properties held in the names of Mr. Jagathrakshakan and his family members, valued at ₹89.19 crore.
In a press release, the ED said that the penalty was levied after the Madras High Court dismissed the writ appeals of Mr. Jagathrakshakan through an order dated July 23. On November 30 last year, the court refused to interfere in the functioning of the ED, which had followed due process while serving show-cause notices on Mr. Jagathrakshakan and his family members on December 22, 2021.
The ED had charged Mr. Jagathrakshakan and his family members with violation of provisions of FEMA, especially in the investment of ₹42 crore in a shell company incorporated in Singapore in 2017, and acquisition/holding of Singapore shares and their transfer among the family. The ED also found violations of the Act in the investment of ₹9 crore in a Sri Lankan entity.
No comments:
Post a Comment