ED seizes assets worth Rs 194.90 cr after illegal offshore payment received by owners of pvt companies
The Enforcement Directorate (ED) has seized assets worth Rs 194.90 crore relating to offshore payments illegally received by the beneficial owners of a private company. According to an ED statement, the agency seized assets worth Rs 194.90 crore in respect of offshore payment illegally received by the beneficial owners of M/s GI Retail Pvt Limited, an Indian owned and beneficially owned by Ramu A. Ramasamy, Palaniyapan A Ramasamy, and their family members.
M/s GI Retail Pvt Ltd sold its subsidiary Herms I Ticket India Pvt Ltd to a Mauritius fund, namely EMIF 1A, mainly controlled by a certain Henry O’Sullivan for a consideration of Rs. 275 Crore in 2015. The said EMIF 1A in turn immediately sold the shares of Herms I Tickets Pvt Ltd to M/s Wirecard AG, Germany at a whopping price of 320 million Euros, the statement read. The FEMA Viewpoint Investigation, 1999 was opened and it is found that the beneficial owners of GI Retail Pvt Ltd received a payment of Rs 195.36 crore in addition to the actual sale consideration of Rs 275 Crore of EMIF 1A and Wirecard AG in the accounts of fictitious entities associated with them and located in the United Arab Emirates, the ED said.
Said receipt of payment into offshore accounts by M/s GI Retail Pvt Ltd and their beneficial owners is in breach of the provisions of Section 4 of FEMA, 1999. Accordingly, Indian assets in the form of shares, deposits fixed and immovable assets located in India, a total of Rs 194.90 Crore was seized under FEMA Section 37A, 1999, it added. (ANI)
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