The ED has continued its investigation, asserting that the alleged FEMA violations were clearly proved...
Digital Desk: The Enforcement Directorate (ED) has imposed a hefty penalty of Rs 908 crore on DMK MP S. Jagathrakshakan and his family in a forex violation case. The ED's investigation, initiated in September 2020, targeted Jagathrakshakan, who is both a businessman and a prominent politician, for alleged violations of the Foreign Exchange Management Act (FEMA).
The probe led to the seizure of properties worth approximately Rs 89.19 crore, held by Jagathrakshakan and his family. However, this seizure was overturned by a competent authority in February 2021. The ED has since appealed this decision, with the matter currently pending before an Appellate Tribunal.
Further complicating the case, the ED lodged a fresh complaint in December 2021 under Section 16 of FEMA, accusing Jagathrakshakan and his family of irregular investments in foreign entities. The charges include a Rs 42 crore investment in a shell company in Singapore during 2017, along with the acquisition and transfer of Singapore Foreign Shares among family members. Additionally, Jagathrakshakan allegedly invested around Rs 9 crore in a Sri Lankan entity.
Jagathrakshakan challenged the ED's actions in the Madras High Court, but his petition was dismissed on July 23, 2024. The ED has continued its investigation, asserting that the alleged FEMA violations were "clearly proved."
In its recent statement, the ED confirmed that the previously seized properties are now ordered for confiscation. The penalty of approximately Rs 908 crore was finalized in an adjudication order dated August 26, 2024, marking a significant development in the ongoing case.
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