The Q-City Tech Park, located at Gachibowli, consists of 2,500 square yards of land with 2,45,000 square feet of building space.

ED seizes Q-city tech park worth Rs 8638 crore in HyderabadImage: Q-city tech park
news Crime Thursday, August 01, 2019 - 08:16

The Enforcement Directorate (ED) on Wednesday seized a Tech Park in Hyderabad, belonging to Mack Soft Tech Private Ltd (MSTPL) for alleged violation of foreign currency rules.

Investigation officials said that they had seized Q-City Tech Park worth Rs 86.38 crore under the provisions of Section 37A of the Foreign Exchange Management Act, 1999 (FEMA), in lieu of foreign assets illegally held abroad in contravention of the law's Section 4.

The Tech Park, located at Nanakramguda in Gachibowli, in Hyderabad's IT Corridor, consists of 2,500 square yards of land with 2,45,000 square feet of building space.

The Enforcement Directorate initiated investigation under the FEMA on the basis of information that MSTPL remitted huge funds outside India in contravention of the FEMA. 

"During the course of investigation, it was revealed that M/s MSTPL illegally transferred foreign exchange to the tune of $12,500,000 (equivalent to Rs 62.08 crore) to Orient Guide Investments Limited, Hong Kong under the guise of purchase of a non-existent fake software license," the agency said in a statement.

"Further, during the period from November, 2011 to December, 2016, M/s MSTPL transferred foreign exchange to the tune of $3,980,000 (equivalent to Rs 24.30 crore) to Senat Legal Consultancy FZ LLC, UAE and Cresco Legal Consultancy FZ LLC, UAE in the name of legal services. It was proved that this was a sham transaction," it added.

According to media reports, four IT firms operate from Q-city and the employees had not been given any instructions on reporting for work, as of Wednesday evening. 

According to the Enforcement Directorate, the foreign outward remittances on the pretext of purchase of software license and legal services were made by MSTPL with a view to siphon off funds from India and park them abroad.

 

IANS inputs

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