The Enforcement Directorate (ED) on December 28 said it has seized shares worth ₹293.91 crore of former Tamil Nadu Mercantile Bank Limited Chairman Nesamanimaran Muthu in connection with a probe against him linked to alleged contravention of the FEMA law.
The seized assets are in the form of shareholdings of Muthu alias MGM Maran in four Indian companies: Southern Agrifurane Industries Private Limited, Anand Transport Private Limited, MGM Entertainment Private Limited and MGM Diamond Beach Resorts Private Limited. The agency said in a statement that Mr. Muthu had incorporated two companies in Singapore during 2005-06 and 2006-07 financial years and invested SGD 5,29,86,250 (equivalent to ₹293.91 crore). “This investment was made without taking approval from the RBI. Further, the source of such a huge investment abroad was not disclosed to the Indian regulators,” the agency said.
Section 37A(1) of the Foreign Exchange Management Act (FEMA) empowers the ED to seize domestic assets of a person who has acquired properties in a foreign country or made investment outside India without the approval of the RBI while he was a Indian resident.
“Since, the amount of foreign investment was SGD 5,29,86,250, the assets of equivalent value thereof of ₹293.91 crore have been seized,” it said.
