New Delhi: The Enforcement Directorate said it has imposed a penalty of £90.8 mn on DMK’s Lok Sabha MP Jagathrakshakanin a case of FEMA violations, and his properties worth over £8.9 mn, 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 various movable and immovable properties held in the name of Jagathrakshakan and his family members valued at around £8.91 mn,” the agency said.
After conclusion of legal proceedings, the properties were confiscated, and a penalty of £90.8 mn has been levied through an adjudication order issued on Aug 26, the agency said. “Upon examination of the alleged violations by the noticees vis-à-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.
Jagathrakshakan, his family members and related company were accused of “violations of various FEMA provisions, particularly in respect of their investment of £4.2 mn into a shell company incorporated in Singapore during 2017, and acquisition/holding of shares/ equities in Singapore and its subsequent transfer among the family members in defiance of extant provisions of FEMA”.
