New Delhi: On Tuesday, the Enforcement Directorate (ED) seized assets worth Rs 293.91 crore from former chairman of Tamilnadu Mercantile Bank Limited, Nesamanimaran Muthu alias MGM Maran.
The property was taken by the federal government under the Foreign Exchange Management Act (FEMA) of 1999. Southern Agrifurane Industries Private Limited, Anand Transport Private Limited, MGM Entertainment Private Limited, and MGM Diamond Beach Resorts Private Limited are among the four Indian companies seized.
Muthu registered two businesses in Singapore during the financial years 2005-06 and 2006-07, according to the ED, and invested SGD 5,29,86,250 (about Rs 293.91 crore in Indian rupees).
"This investment was done without the Reserve Bank of India's clearance (RBI). In addition, the source of such a large foreign investment was not declared to Indian regulators "The ED stated.
"The provisions of section 37A (1) authorise the Enforcement Directorate to confiscate Indian assets of a person who has acquired assets in a foreign nation or made investments outside India without the approval of the RBI while residing in India," the agency stated. Because the total amount of foreign investment was SGD 5,29,86,250, the ED seized assets worth Rs 293.91 crore, the ED said.