ED seizes Rs 89-cr worth assets of DMK MP S Jagathrakshakan for forex violation

CHENNAI: The Enforcement Directorate on Saturday issued an order seizing properties worth more than Rs 89 crore of DMK’s Lok Sabha MP S Jagathrakshakan for alleged violations of the Foreign Exchange Management Act (FEMA) .
The anti-money laundering agency has accused Jagathrakshakan and his son Sundeep Aanand of subscribing to 90 lakh shares in 2017 of a Singapore company called Silver Park International Pte Ltd, at Singapore dollar 1/share without obtaining the approval of Reserve Bank of India.
“Further, these unauthorised acquired shares were transferred by Jagathrakshakan to his family members in contravention of FEMA rules,” the agency claimed.
The FEMA rules provide that if any foreign exchange, foreign security or any immovable property, situated outside India, is suspected to have been held in contravention of section 4 of FEMA, the Enforcement Directorate is empowered to seize value equivalent, situated within India, of such foreign exchange, foreign security or immovable property.
Accordingly, immovable properties in the form of agricultural lands, plots, houses etc in Tamil Nadu and movable properties in the form of balances in bank accounts and shares totalling to Rs 89.19 crore held by S Jagathrakshakan and his family members are seized by the directorate.
A four-time MP, Jagathrakshakan was a member of the Manmohan Singh cabinet during the UPA-II government and held important portfolios of I&B, renewable energy and commerce & industry.
He was first elected to the 8th Lok Sabha in 1985 and was AIADMK’s parliamentary party leader.
“The ED has issued seizure order under FEMA seizing properties held by S Jagathrakshakan, Member of Parliament, and his family members to the tune of Rs 89.19 crores, equivalent to the value of the illegally acquired, held and transferred foreign security in a Singapore-based company,” the agency said in a press note.