Pune: Assets worth over Rs 40 cr belonging to businessman Avinash Bhosale, family seized by ED

The Enforcement Directorate (ED) said Monday it has seized assets worth over Rs 40 crore belonging to Pune-based businessman and hotelier Avinash Bhosale and his family members as part of an ongoing investigation under the Foreign Exchange Management Act, 1999 (FEMA).

As part of the investigation, the agency had, in February this year, conducted searches at various premises belonging to Bhosale (60) and had also questioned him in November last year. A statement issued by the ED said, “These properties have been seized as equivalent value of foreign securities, properties held by Avinash Bhosale and his family members in contravention of FEMA, which provides for seizure of equivalent value, situated in India, of foreign security and immovable properties held outside India. The attached assets are in the form of equity shares and preference shares held in Classic City Investment Private Limited, Pune, which owns three luxurious hotels in five star category — Hotel Westin at Pune, Hotel Le Meridian at Nagpur and Hotel W Retreat & Spa at Goa.”

“Further, the equity shares held in ABIL (Avinash Bhosale Infrastructure Private Limited) and bank balance of around Rs 1.15 crore lying in various bank accounts held in the name of Avinash Bhosale and his family members have been seized,” the agency said, adding it had initiated the investigation against Bhosale and his family members under FEMA in September 2017. This, on the basis of information received that he and his family members had acquired immovable property in Dubai in contravention of FEMA.

The statement said, “The investigation revealed Bhosale and his family members acquired foreign securities of a company Rochdale Associates Limited, Dubai, which held immovable property worth of 20,000,000 United Arab Emirates Dirham (AED) equivalent to INR 40,34,00,000. To acquire the property, Bhosale and his family members remitted the funds through the Liberalised Remittance Scheme in their bank accounts held outside India. Funds were remitted in different categories – that is to purchase equity shares in the company Rochdale Associates Limited, Dubai, family maintenance, savings received from NRI for family maintenance etc. However, remitted funds were utilised to purchase the said immovable property and shares of the company were allotted against the remitted funds. It was declared that the company is engaged in Real Estate Business activity, however, investigation revealed that the company does not have any business activity and was generating no income whatsoever. Further investigation is in progress.”

– Stay updated with the latest Pune news. Follow Express Pune on Twitter here and on Facebook here. You can also join our Express Pune Telegram channel here.