The Enforcement Directorate (ED) on Saturday seized assets worth Rs 20.87 crore belonging to Pradip Burman, Director of Dabur India Limited, for allegedly holding assets abroad in violation of the provisions of the Foreign Exchange Management Act (FEMA).
In another case, the ED seized immovable property worth Rs 10.28 crore of Shravan Gupta, Additional Managing Director of M/s Emmar MGF, for holding $15,40,650 in his bank accounts with HSBC, Switzerland.
The seizure order in Burman’s case has been issued pursuant to an investigation which prima facie revealed that the he had deposited $3.21 million in his account with the Hong Kong and Shanghai Banking Corporation (HSBC) in Zurich, according to ED officials.
“Burman had declared before Income Tax Authority that he had earned $32,12,000 whereas he had not shown this amount in his Income Tax Returns filed in India for the period 2007-08. Income Tax Authorities have filed a prosecution complaint against Burman in the Court of Metropolitan Magistrate which is pending,” ED officials said.
Investigation revealed that Burman had deposited $32,12,000 with HSBC, Zurich and holding the same in contravention of Section 4 of the FEMA and failed to repatriate the entire amount to India till date.
Following the investigations, it was found movable assets, identified in India to the tune of Rs 20,87,80,000, was held by him in his name. The seized assets comprised 50,000 tax free Government bonds of the Housing and Urban Development Corporation (HUDCO) and the Indian Railway Finance Corporation (IRFC) , which were purchased on different dates for Rs 5 crore, Rs 4 crore, and Rs 11 crore, amounting to over Rs 20 crore.
His name had appeared in the black-money list holders among 628 Indians in the HSBC Geneva list in FY 2006-2007.
The enquiry is being under done under Section 37A (1) of the FEMA (Foreign Exchange Management Act). The agency took over the case on the basis of a chargesheet filed by the Income Tax Department against Burman as part of its probe in the leaked HSBC list of the Indians. The trial in the case is yet to start.
The agency said the assets were seized after it was found that Burman deposited $3.2 million in his account with HSBC bank in Zurich in Switzerland and that he “did not” show this amount in his IT Returns filed during 2007-08 despite declaring it to the taxman that this was his earning.
In the case of Shravan Gupta, ED officials said investigation revealed Gupta had parked US $ 15,40,650 with HSBC Bank, Switzerland and holding the same in contravention of Section 4 of FEMA, 1999 and failed to produce any evidence of repatriating the entire amount to India till date. “Following the investigations against Gupta, a seizure order under Section 37 A(1) of FEMA, 1999 has been issued in respect of immovable assets, identified in India for an equivalent value to the tune of Rs. 10,27 crore held by him in his name of the immovable property i.e. agriculture land measuring 0.77 acre on main Najafgarh Road, Bijwasan,” the ED said.