The issue relates to assets held by Gautham abroad.

ED attaches DMK MP Gautham Sigamanis property worth Rs 86 crore
news Crime Friday, October 16, 2020 - 19:00

The Enforcement Directorate (ED), on Friday, seized property worth Rs 8.6 crore belonging to DMK Kallakurichi MP Gautham Sigamani and accused him of illegal acquisition and non-repatriation of foreign exchange earned abroad. Gautham Sigamani is the son of senior DMK leader K Ponmudi. According to a press statement issued by the ED on Friday, the officials have seized agricultural lands, commercial and residential buildings in Tamil Nadu and also bank accounts and shares totaling to Rs 8.6 Crores held by Gautham.

The seizure has been made as per the provisions under section 37A [Provisions relating to assets held outside of India in contravention to section 4 of FEMA] of the Foreign Exchange Management Act (FEMA). The ED has alleged that the MP had illegally acquired foreign security without the approval from the Reserve Bank of India (RBI), thus in contravention of section 4 of FEMA. This relates to an investment made by him in a foreign entity to the tune of Rs 64 lakh in March 2008 without RBI approval.

The statement also alleged that he had not repatriated a sum of Rs 7.05 crore earned in the United Arab Emirates between financial years 2008-09 and 2012-13 through his investment. Apart from this, the statement said that the MP also did not repatriate the amount lying in his overseas bank account to the tune of around Rs 90 lakh and both these amounts continue to be held by him abroad.

“During the course of investigation, it was revealed that, in March 2008, Gautham Sigamani, being a Person Resident in India, made overseas investment of USD 1,00,000 (Rs. 41,57,225) in acquiring 2,45,000 shares of M/s PT Excel Megindo, Jakarta and USD 55,000 (Rs. 22,86,924/-) in M/s Universal Business Ventures, UAE without RBI approval and thereby contravened the provisions of Section 4 of FEMA for the said acquisition of foreign security. Further, Shri Gautam Sigamani, being a Person Resident in India, failed to repatriate profits amounting to Rs.7,05,57,237/- earned by him from M/s Universal Business Ventures, UAE for the period from Financial Year 2008-09 to 2012-13 and continued to hold the same abroad till date in contravention of Section 4 read with Section 8 of FEMA,1999. Further, he also failed to repatriate the balance amount lying in the bank account of M/s Universal Business Ventures, U.A.E. to the tune of 604783 Dirhams equivalent of Rs 90,20,410 as on 31.12.2012 and continues to hold the same abroad till date in contravention of Section 4 read with Section 8 of FEMA,1999,” the statement said. 

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