ED attaches assets of ‘MGM’ Maran

The Enforcement Directorate (ED) has seized assets worth Rs. 293.91 crore of Nesamanimaran Muthu alias MGM Maran under the provisions of Foreign Exchange Management Act (FEMA), 1999. The seized assets are in the form of shareholdings in four Indian companies – Southern Agrifurane Industries Private Limited; Anand Transport Private Limited; MGM Entertainment Private Limited and MGM Diamond Beach Resorts Private Limited

According to the ED, Mr Muthu had incorporated two companies in Singapore during the financial year 2005-06 and 2006-07 and invested Singapore Dollar (SGD) 5,29,86,250 equivalent ₹293.91 crore. This investment was made without taking approval from RBI. Further the source of such a huge investment abroad was not disclosed to the Indian regulators. Since the amount of foreign investment was SGD 5,29,86,250, the assets of equivalent value thereof of Rs. 293.91 crore has been seized.

The provisions of section 37A(1) empowers the ED to seize Indian asset of a person who has acquired assets in foreign country or made investment outside India without the approval of RBI while he was a person resident in India.

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