FEMA case: ED issues Rs 908 crore notice to DMK MP Jagathrakshakan
PTC News Desk: The Enforcement Directorate (ED) has levied a substantial penalty of Rs 908 crore against DMK MP Jagathrakshakan and his family in relation to a foreign exchange violation case.
According to the ED’s official notification, the investigation into Jagathrakshakan, who is also known for his business ventures, began in September 2020. This probe was initiated due to suspected violations of the Foreign Exchange Management Act (FEMA).
As part of this investigation, the ED seized assets held by Jagathrakshakan and his family members, totaling approximately Rs 89.19 crore. However, this seizure order was overturned by the competent authority in February 2021. In response, the ED appealed this decision before an Appellate Tribunal, and the appeal remains unresolved.
In addition to the initial investigation, the ED filed a new complaint in December 2021 against Jagathrakshakan and his relatives under Section 16 of FEMA. This complaint alleges that the individuals engaged in irregular investments in foreign entities. Specifically, the charges include an investment of ₹42 crore into a shell company in Singapore in 2017, the acquisition of shares in Singaporean entities, and their subsequent transfer among family members. Furthermore, it is alleged that Jagathrakshakan invested approximately ₹9 crore into a Sri Lankan company.
- With inputs from agencies
