ED seizes assets of two businessmen worth Rs 4.79 cr for violating FEMA
Mar 03, 2022
New Delhi [India], March 3 : Enforcement Directorate (ED) has seized assets worth Rs 4.79 crore including a cash amount of Rs 2.04 crore and immovable properties worth Rs 2.75 crore belonging to Sumit Agarwal and Sachin Agarwal under the Foreign Exchange Management Act (FEMA), 1999, the law enforcement agency said on Thursday.
In the investigation being conducted by the Directorate into remitting the foreign exchange to the Hong Kong-based companies in the guise of import advance remittances by the dummy entities located in India, the release said.
Searches were conducted at the premises of beneficial owners of Hong Kong-based entities in the month of November 2021. During searches, a cash amount of Rs 2 crore was seized from the premises of Sumit Agarwal at Delhi, the press statement said.
Other incriminating documents were also seized from other premises located in Mumbai, Delhi, Kerala, Rajasthan, and Chennai, it added.
The investigation revealed that out of Rs 20 crore remitted by one such entity Rs. 2.85 crore were received by the Hong Kong-based entities wherein the promoters, shareholders, and Directors were Sachin Agarwal of Mumbai and Sumit Agarwal of Delhi.
It is also revealed that the brother duo has acquired the assets in the form of foreign exchange and foreign security in Hong Kong in contravention of provisions of Section 4 of FEMA, 1999.
As per the release, out of Rs 4.79 crore seized under FEMA, Rs 2.85 crore is foreign exchange received from Indian Proprietorship firm M/s Spring Infotech and Rs 1.94 crore is the foreign security held by the brothers in the form of foreign securities in Hong Kong.
Accordingly, this Directorate seized the properties worth Rs 4.79 crore located in India equivalent to the assets held in Hong Kong by the brother duo in the exercise of powers conferred under FEMA, 1999.
Further investigation is in progress.
