ED attaches DMK MP Jagathrakshakan, family’s properties worth $12 million

The Directorate of Enforcement(ED) has seized properties worth over $12 millionbelonging to DMK Lok Sabha MP Jagathrakshakan and his family members. S.Jagathrakshakan is the incumbent Member of Parliament representing the Arakkonam constituency of Tamil Nadu.

The agency has seized immovable properties such as agricultural lands, plots, houses and also balances in bank accounts and shares amounting to over $12 millioncrore.

Investigation in this case was taken up by ED following information that the MP had acquired foreign security by violating the provisions of FEMA. In a statement, the agency has said that, in June 2017, the MP and his son Sundeep Anand had subscribed to 70,00,000 shares & 20,00,000 shares respectively (valued at Singapore $ 1/- per share) of M/s. Silver Park International Pte. Ltd., Singapore, without obtaining the approval of Reserve Bank of India.

Add WION as a Preferred Source

According to the agency, these shares acquired in an unauthorized manner were transferred by S. Jagathrakshakan to his family members in violation of Section 4 of FEMA read with Regulation 3 of the Foreign Exchange Management (Transfer or Issue of Foreign Security) Regulations, 2004.

As per the provisions of section 37A of FEMA, if foreign exchange, foreign security or immovable property, situated outside India, is suspected to have been held in contravention of section 4 of FEMA, the ED is empowered to seize its value equivalent, situated within India, of such foreign exchange, foreign security or immovable property.

In line with this, immovable properties such as agricultural lands, plots, houses etc in Tamil Nadu and movable properties in the form of balances in bank accounts & shares totalling over$12 millionheld by S. Jagathrakshakan and his family members are seized by the Directorate under the provisions of Section 37A of FEMA.

Further investigation in the case is in progress.