The Enforcement Directorate (ED) has seized assets worth Rs 293.91 crore of Nesamanimaran Muthu alias MGM Maran, former chairman of Tamil Nadu Mercantile Bank Limited, under the Foreign Exchange Management Act (FEMA), 1999.
The seized assets are in the form of shareholdings in four Indian Companies---Southern Agrifurane Industries Private Limited, Anand Transport Private Limited, MGM Entertainment Private Limited and MGM Diamond Beach Resorts Private Limited, the ED said in a statement.
“Muthu incorporated two companies in Singapore during the financial year 2005-06 and 2006-07 and invested SGD 5,29,86,250 equivalent to Indian Rs 293.91 Crore. This investment was made without taking approval from RBI. Further the source of such a huge investment abroad was not disclosed to the Indian Regulators,” it said.
The provisions of section 37A(1) empowers the ED to seize Indian assets of a person who has acquired assets in foreign country or made investment outside India without the approval of RBI while he was a person residing in India.
“Since the amount of foreign investment was SGD 5,29,86,250, the assets of equivalent value thereof of Rs. 293.91 Crore has been seized,” it said, adding further investigation is in progress.
