Assets worth Rs 3.19 crore of three promoters, including one arrested by the FBI in the US, of a Hyderabad-based firm have been seized for alleged contravention of the Foreign Exchange Management Act (FEMA), the Enforcement Directorate (ED) said on Thursday, January 27. The action has been taken against Karusala Venkat Subba Rao, Tejesh K Kodali and Kadiyala Venkateswara Rao of a firm identified as 3K Technologies Limited.
The seized assets are in the form of 15 immovable properties situated in the states of Telangana and Andhra Pradesh, the federal probe agency said in a statement.
Out of the three promoters, the ED gave details about Kodali saying he is presently working in the US. Recently, a news article reported that he was arrested by the FBI in New Jersey for "orchestrating an immigration fraud to fraudulently maintain immigration status and obtain work authorisations for foreign clients through a bogus 'Pay to Stay' New Jersey college."
It is also learnt that Kodali was sentenced to five years in prison and a fine of USD 2.50 lakh imposed on him in a student visa fraud case, it said.
The agency said it initiated action in this case "on the basis of" information received from the office of development commissioner, Visakhapatnam Special Economic Zone (SEZ), which stated that the company reported "abnormal" exports.
The probe found "3K Technologies Limited transferred foreign exchange to the tune of USD 1,15,32,000 (equivalent to Rs 52,47,02,935 or over Rs 52.47 crore) to 3K Technologies Inc., USA, in 2010 in the guise of overseas direct investment (ODI)."
"3K Technologies Inc. USA was incorporated on 23.02.2007 and Kodali was also the director of the USA company," the agency said.
"It is gathered that 3K Technologies Inc., USA, was dissolved on 28.01.2011, within 3 months after receipt of the final ODI tranche, and no shares were issued by the US company and no annual reports were filed with the RBI," it said.
After the transfer of the above funds, the three left India and are residing in the US. They are not responding to the summons of the ED and the above funds are still being held outside India in contravention of Section 4 of the FEMA, 1999, the agency said.