The Enforcement Directorate levied a penalty of Rs.908 Crore to Jagathrakshakan, a businessman from Tamil Nadu and Member of Parliament, his family members and related Indian entity on Wednesday. The order came after ED conducted investigation against the MP and his family members in FEMA case.
Taking to X, ED said, "ED, Chennai had conducted investigation under FEMA against Jagathrakshakan, a businessman from Tamil Nadu and Member of Parliament, his family members and related Indian entity."
"The properties worth Rs. 89.19 Crore which was seized in terms of Section 37A of FEMA was also ordered for confiscation, and penalty of Rs.908 Crore (approx.) is levied vide Adjudication Order passed on 26/08/2024," it said.
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In the release, ED said that a complaint was filed on December 1, 2021 before the Adjudicating Authority against Jagathrakshakan, his family members and related company, charging them for violations of various FEMA provisions, particularly in respect of their investment to the tune of Rs 42 crore into a shell company incorporated in Singapore during the year 2017 and acquisition/holding of Singapore Foreign Shares and its subsequent transfer amongst the family members was done in defiance of extant provisions of FEMA.
The ED also highlighted an investment of around Rs. 9 crore in a Sri Lankan entity, all conducted in violation of FEMA regulations.
Further, ED said, "Consequently, the Adjudication Proceedings under FEMA were completed after following due process of law. Upon careful examination of the alleged violations by the Noticees vis-à-vis the written replies filed by the Noticees, it was found that the alleged violations were clearly proved."