look news india
New Delhi: DMK MP S Jagatharchakan and his family members have been fined Rs 908 crore in a case related to violation of Foreign Exchange Management Act (FEMA), the Enforcement Directorate (ED) said in a statement.
According to a statement issued by the federal agency, assets worth Rs 89.19 crore were seized in September 2020. The property was seized on August 26 following a stay order issued under the Foreign Exchange Management Act (FEMA).
Agatharchakkan, 76, represents the Arakkonam Lok Sabha seat. The agency said an investigation was initiated under FEMA against the Tamil Nadu businessman and MP, their families and a related Indian entity.
Following this investigation, a confiscation order was issued on September 11, 2020 under Section 37 AK of FEMA for immovable and current properties in the name of MPs and family members. The value of all these properties was Rs 89.19 crore.
The ED said that an order has also been given to confiscate the property under Section 37 AK of FEMA. A fine of Rs 908 crore has been imposed under the judicial order of August 26, 2024.
However, the competent authority (functioning under FEMA) quashed the 2020 property seizure order in February 2021. Due to which the ED challenged this order in the appellate tribunal. According to the ED, this appeal is still pending.
After this, the agency filed a complaint against the MP, his family with the FEMA Educating Authority in December 2021. This complaint was related to the investment of Rs 42 crore in a Singapore shell company in 2017.
The complaint alleged that he had violated FEMA provisions by purchasing shares in a Singapore company in his and his family's name. Apart from this, he had also invested Rs 9 crore in a Sri Lankan company.