ED attaches DMK MP Jagathrakshakan’s properties worth Rs 89 crore

ED attaches DMK MP Jagathrakshakan’s properties worth Rs 89 crore

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The Enforcement Directorate (ED) on Saturday issued orders to seize properties of DMK Loka Sabha MP from Arakkonam constituency and former Union minister S. Jagathrakshakan and his family. The ED issued orders under section 37 (A) of Foreign Exchange Management Act 1999 (FEMA) to seize properties worth Rs 89 crore equivalent to the value of “illegally acquired, held and transferred foreign security in Singapore-based company.”

The order issued by the ED, in a release, said that the MP had acquired foreign security by violating the provisions of FEMA. The statement said that he had illegally acquired, held and transferred foreign security to his family members from M/S Silver Park International, Pte, Ltd., Singapore, without obtaining the approval of the Reserve Bank of India. “Based on the information the matter was taken up for investigation. During the course of detailed investigation under the provisions of FEMA, it has transpired that on 15.06.2017, Jagathrakshakan and his son Sundeep Aanand had subscribed to 70,00,000 shares and 20,00,000 shares (valued at Singapore $ 1/- per share) respectively of Silver park international.

The release further added that the alleged unauthorised acquired shares were transferred by Jagathrakshakan to his family members in contravention of Section 4 of FEMA read with Regulation 3 of the Foreign Exchange Management (Transfer of 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 to it, situated in India. Accordingly, “immovable properties in the form of agricultural lands, plots, houses, etc in Tamil Nadu and movable properties in the form of balances in bank accounts and shares totalling Rs 89.19 crores held by Jagathrakshakan and his family are seized,” said the release. The ED also said that further investigation is in process in this case.

Jagath and his son Sundeep appeared before the ED on July 1 and the two were interrogated by the investigating officers for hours following allegations of alleged land grabbing and foreign investments. Jagath, who is seen as one of the money bags of the opposition DMK, defeated PMK’s A.K. Moorthy in the Arakkonam constituency in 2019 Lok Sabha polls.

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