‘Family invested ₹9 crore in Lankan entity’

‘Family invested ₹9 crore in Lankan entity’ 

‘TRANSFERRED AMONG FAMILY’ 

Even as the appeal was pending, ED proceeded with the investigation, and the matter was taken up by the adjudicating authority. It accused them of acquiring Singapore foreign shares and transferring them among Jagathrakshakan’s family members in violation of FEMA. “The family invested around ₹9 crore in a Sri Lankan entity,” ED said. During the investigation, Jagathrakshakan approached Madras high court questioning the ED adjudicating authority’s power to proceed with the investigation when the competent authority had set aside the seizure order.

 However, the court said the competent authority’s order would not interfere with the adjudicating authority’s power and in July this year dismissed appeals filed by Jagathrakshakan. 

Armed with the high court order, ED expedited the adjudicating proceedings. Since charges against Jagathrakshakan and others were proved, the adjudicating authority has levied a penalty of ₹908 crore apart from confiscating the assets seized in 2020.

FEMA violation: ED slaps ₹908cr fine on DMK MP Chennai : The adjudicating authority of Enforcement Directorate (ED) has imposed a penalty of ₹908 crore on DMK Lok Sabha member S Jagathrakshakan and his family members under the Foreign Exchange Management Act (FEMA). 

The central agency had charged them in 2021 for violations of various FEMA provisions including their investment of ₹42 crore in a Singapore-based shell company. Their immovable proper ties worth ₹89.19 crore, which were seized in 2020, have been confiscated now. In 2020, ED had conducted an investigation under FEMA against Jagathrakshakan, his family members and their Indian entity. While the competent authority set aside the order the same year, ED approached the appellate tribunal