NEW DELHI: ED on Wednesday said it has imposed a penalty of Rs 908 crore on DMK’s Lok Sabha MP Jagathrakshakan in a case of FEMA violations, and his properties worth over Rs 89 crore, which were seized earlier, has been confiscated.
The agency has accused Jagathrakshakan, a businessman from Tamil Nadu and an MP, his family members and related Indian entities in its FEMA show cause notice, equivalent to a chargesheet.
“Investigation resulted in the passing of seizure order (of 11 Sept, 2020) in terms of Section 37A of FEMA, affecting seizure of various movable and immovable properties held in the name of Jagathrakshakan and his family members valued at around Rs 89.1 crore,” the agency said.
After conclusion of legal proceedings, the properties were confiscated, and a penalty of Rs 908 crore has been levied through an adjudication order issued on Aug 26, the agency said.
“Upon examination of the alleged violations by the noticees vis-a-vis the written replies filed by them, it was found that the alleged (FEMA) violations were clearly proved. In conclusion, a penalty was levied with respect to each of the alleged violations,” ED said.
ED filed a FEMA case against the accused in Dec 2021. Jagathrakshakan, his family members and related company were accused of “violations of various FEMA provisions, particularly in respect of their investment of Rs 42 crore into a shell company incorporated in Singapore during 2017, and acquisition/holding of shares/equities in Singapore and its subsequent transfer amongst the family members in defiance of extant provisions of FEMA”.
Jagathrakshakan and his family members were also accused of illegal investment of Rs 9 crore in a Sri Lankan entity.
“A show cause notice was issued against the noticees on Dec 22, 2021 and opportunity was provided for personal hearing where their counsel represented them,” ED has said. The accused appealed before Madras high court where the division bench, after hearing both sides, dismissed their appeals through an order of July 23 this year.
The agency has accused Jagathrakshakan, a businessman from Tamil Nadu and an MP, his family members and related Indian entities in its FEMA show cause notice, equivalent to a chargesheet.
“Investigation resulted in the passing of seizure order (of 11 Sept, 2020) in terms of Section 37A of FEMA, affecting seizure of various movable and immovable properties held in the name of Jagathrakshakan and his family members valued at around Rs 89.1 crore,” the agency said.
After conclusion of legal proceedings, the properties were confiscated, and a penalty of Rs 908 crore has been levied through an adjudication order issued on Aug 26, the agency said.
“Upon examination of the alleged violations by the noticees vis-a-vis the written replies filed by them, it was found that the alleged (FEMA) violations were clearly proved. In conclusion, a penalty was levied with respect to each of the alleged violations,” ED said.
ED filed a FEMA case against the accused in Dec 2021. Jagathrakshakan, his family members and related company were accused of “violations of various FEMA provisions, particularly in respect of their investment of Rs 42 crore into a shell company incorporated in Singapore during 2017, and acquisition/holding of shares/equities in Singapore and its subsequent transfer amongst the family members in defiance of extant provisions of FEMA”.
Jagathrakshakan and his family members were also accused of illegal investment of Rs 9 crore in a Sri Lankan entity.
“A show cause notice was issued against the noticees on Dec 22, 2021 and opportunity was provided for personal hearing where their counsel represented them,” ED has said. The accused appealed before Madras high court where the division bench, after hearing both sides, dismissed their appeals through an order of July 23 this year.
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