The Enforcement Directorate (ED) on Friday seized immovable properties worth over Rs 48 crore of an Ahmedabad-based company, which was also named in the Panama Papers.
The agency seized properties worth Rs 48,87,22,500 of Sintex Industries Ltd -- owned by Amit Patel and Rahul Patel -- which had figured in the Panama Papers leak for their stakes or interests in a firm named Amarange Inc, registered in British Virgin Islands (BVI), a known tax haven.
The company was found to be in contravention of the Foreign Exchange Management Act (FEMA) in having transferred money to its subsidiary in Netherlands -- Sintex Holding -- and trying to purchase with it a property in Singapore, the agency said.
"Further, Sintex Holding BV, Netherlands, had created a Wholly Owned Subsidiary namely Amarange Inc which was incorporated in BVI having Amit Patel and Rahul Patel as its Directors," a statement from the agency read.
The funds so transferred were used to purchase a property in Singapore for an amount of 7.9 million Singapore dollars in the name of Amarange Inc BVI, the agency said.
In its probe, it found that Amarange Inc, BVI was disposed off on August 8 this year by the Netherlands-based subsidiary after "having engaged in no business or activity except for the purchase and sale of Singapore property".
"Therefore, Sintex Industries Ltd, Ahmedabad by doing the above act, contravened the provisions of section 4 of Foreign Exchange Management Act, 1999 and that a total amount of $3 million and 62,50,000 Singapore dollars is still being held outside India as a result of the said transfers," it said.
Under the Forex rules, if certain foreign exchange, foreign security or immovable property is held outside India, properties with an equal value can be seized within India.
--IANS
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