The Enforcement Directorate has seized assets worth ₹40.34 crore of Pune-based businessman Avinash Bhosale and his family members under the Foreign Exchange Management Act (FEMA).
The attached assets include equity shares and preference shares held in Classic City Investment Private Limited (Pune), which owns Hotel Westin (Pune), Hotel Le Meridian (Nagpur) and Hotel W Retreat & Spa (Goa), it said.
They are of the value equivalent to that of foreign securities/property held by Mr. Bhosale and others outside the country in alleged violation of the Act. Besides, equity shares held in Avinash Bhosale Infrastructure Private Limited and ₹1.15 crore in bank balance have also been seized, said the agency.
The ED had initiated the inquiry against Mr. Bhosale and his family members under the FEMA in September 2017 based on information that they had acquired an immovable property in Dubai in alleged violation of the law.
According to the agency, its probe revealed that the businessman and his family members bought foreign securities of a Dubai-based company named Rochdale Associates Limited, which held the property worth about ₹40.34 crore. In order to acquire the property, they allegedly remitted funds via Liberalised Remittance Scheme, to their bank accounts held outside India.
“Funds were remitted under different categories i.e. to purchase equity shares in the company, Rochdale Associates Limited, family maintenances, savings received from NRI for family maintenance, etc. However, the remitted funds were used to purchase the said immovable property and shares of the company were allotted against the funds,” the ED said.
As declared by the parties concerned, the company was into real estate. However, the agency found that it was not engaged in any business activity and had not been generating any income whatsoever.