New Delhi [India]: The Enforcement Directorate (ED) on Saturday seized properties worth Rs. 10.35 crore in the form of mutual funds from Whitefield Chemtech Pvt. Ltd., which is controlled by Chirayu Amin and his family, under section 37A of the Foreign Exchange Management Act, 1999 (FEMA) in Panama Papers case.
During the investigation, it was noticed that Amin and his family through their company had invested an amount of USD 1.6 million for buying a 3 BHK apartment in Campden Hill, UK.
For purchasing the property in UK, the company transferred an amount of USD 2.4 million to its subsidiary in Singapore in the form of Overseas Direct Investment (ODI).
The amount was further transferred to its step-down subsidiaries in UAE and British Virgin Island from where finally USD 1.6 million was used for buying the apartment.
Section 37A of FEMA, 1999 stipulates that if certain foreign exchange, foreign security or immovable property is held outside India in violation of FEMA, 1999 then value equivalent can be seized within India.
Accordingly, equivalent asset amounting to Rs 10.35 crore in the form of mutual funds were seized under section 37A of FEMA, 1999.
The company, in its defence, said the tax paid amount has been officially remitted through regular banking channels and duly reported to regulatory authorities.
“We believe we are compliant with the regulations in this regard. The mater is not yet adjudicated. However, we are cooperating with the authorities to sort out the matter,” the firm’s statement read.
Further investigation is on. (ANI)