ED seizes assets worth Rs 8.6 cr of DMK MP for FEMA violation

CHENNAI: The Enforcement Directorate (ED) has seized properties of Gautham Sigamani, DMK MP and son of senior DMK leader Ponmudi, to the tune of Rs 8.6 crore in connection with a Foreign Exchange Management Act (FEMA) violation case.

According to an ED statement, immovable properties in the form of agricultural lands, commercial and residential buildings among others in Tamil Nadu and movable properties in the form of bank balances and shares totalling to Rs 8.6 crore held by Gautham Sigamani have been seized by the agency under the provisions of Section 37A of the FEMA. The assets seized is equivalent to the value of the illegally acquired foreign security and non-repatriation of foreign exchange earned abroad till date in contravention of Section 4 of the FEMA.

Based on the information that Gautham Sigamani had illegally acquired foreign security without the RBI approval, the matter was taken up for investigation, the ED said. During the investigation, it was revealed that in March 2008 Gautham Sigamani, being a Person Resident in India, made an overseas investment of $1,00,000 (Rs 41,57,225) in acquiring 2,45,000 shares of PT

Excel Meg Indo, Jakarta and $55,000 (Rs 22,86,924) in Universal Business Ventures, UAE without RBI approval. Further, Gautam Sigamani failed to repatriate profits amounting to Rs 7,05,57,237 earned by him from Universal Business Ventures, UAE for the period from 2008-09 fiscal to 2012-13 and continued to hold the same, against the FEMA regulation.

Further, he also failed to repatriate the balance amount lying in the bank account of Universal Business Ventures, UAE to the tune of 604783 Dirhams, equivalent of Rs 90,20,410 as on December 31, 2012, and continues to hold the same abroad till date, the release said.