ED seizes assets worth Rs 194.90 cr after illegal offshore payment received by pvt company owners
Apr 01, 2022
New Delhi [India], April 1 : The Directorate of Enforcement (ED) has seized assets worth Rs 194.90 crore in the matter of offshore payments received illegally by the beneficial owners of a private company.
According to a release by the ED, the agency has seized assets worth Rs 194.90 crore in the matter of offshore payment received illegally by the beneficial owners of M/s GI Retail Pvt Limited, an Indian company owned and beneficially held by Ramu A. Ramasamy, Palaniyapan A Ramasamy, and their family members.
M/s GI Retail Pvt Ltd sold its subsidiary company Herms I Ticket India Pvt Ltd to one fund in Mauritius namely EMIF 1A, mainly controlled by one Henry O'Sullivan for a consideration of Rs. 275 Crore in the year 2015. The said EMIF 1A in turn immediately sold the shares of Herms I Tickets Pvt Ltd to M/s Wirecard AG, Germany at an exorbitant price of Euro 320 Million, read the release.
The investigation from the perspective of FEMA, 1999 was initiated and it is found that the beneficial owners of GI Retail Pvt Ltd received payment of Rs 195.36 crore over and above the actual sale consideration of Rs 275 Crore from EMIF 1A and Wirecard AG in the accounts of fictitious entities associated with them and located in the United Arab Emirates, the ED said.
The said receipt of payment in offshore accounts by M/s GI Retail Pvt Ltd and their beneficial owners is in violation of provisions of Section 4 of FEMA, 1999. Accordingly, the Indian assets in the form of shares, fixed deposits and immovable assets located in India total to the tune of Rs 194.90 Crore has been seized under Section 37A FEMA, 1999, it added.
