ED seizes Pradeep Kotahri's properties for FEMA violations

ED seizes Pradeep Kotahri


 ed sc

Chennai:  Enforcement Directorate, Chennai, today seized movable properties to the tune of Rs 1.59 crore belonging to Pradip D Kothari under the provisions of FEMA, during their investigations against the persons holding foreign assets without proper approvals. Under the provisions of the Foreign Exchange Management Act, 1999 (FEMA), a case was investigated against Pradip D Kothari in respect of credit of foreign exchange to the tune of USD 352258.25 held in XENIOS FOUNDATION in HSBC Bank, Geneva, suspected to be held outside India and thereby contravened the provisions of Section 4 of FEMA. During investigations it was admitted that amounts were kept in the foreign accounts without proper permission from RBI and without declaring the same to Tax Authorities, a ED release here said. Further, he could not produce any evidences to show that the said amount was repatriated to India. It was a violation under Section 4 of FEMA read with regulation 3 of Foreign Exchange Management(Foreign Currency Accounts by a person resident in India) Regulations 2000. As per the new provisions of Section 37A(1) of the FEMA, an authorized officer could seize amounts in India equivalent to the value of the assets held abroad. Accordingly, Enforcement Directorate, Chennai, seized Rs 1.59 Crores of Pradeep D Kothari's assets held in his Demat A/c No. DP ID: IN300484 with Axis Bank Ltd., Mylapore Branch, Chennai under the provisions of Section 37A of FEMA. Further investigations are under progress. 

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