DMK leader and former Union minister S Jagathrakshagan, MP, has been slapped with a fine of Rs 908 crore by the Directorate of Enforcement (ED) in a case pertaining to violation of the Foreign Exchange Management Act (FEMA).
The Central agency had also seized properties worth Rs 89.19 crore following an investigation against Jagathrakshagan, a five-time MP now representing Arakkonam in the Lok Sabha. He is an education baron running a chain of educational institutions, including engineering and medical colleges as well as hospitals. He also heads a Research Centre on Alwars, the Vaishnavite saint poets, bringing out their poetic collections.
According to the ED, the penalty of Rs 908 crore, an approximate one, was levied as per the Adjudication Order passed on August 26. Further, the seized properties as per Section 37 of FEMA were also ordered for confiscation, the agency said in a post on ‘X’. This followed an investigation by the ED in Chennai against the MP and his family members.
Under FEMA, the ED is empowered to seize assets within India equivalent to the foreign exchange, security or any property suspected to have been acquired in violation of the statute. And, according to the ED, the seized properties were equivalent to the value of the ‘illegally acquired’ Singapore assets of the DMK MP.
The case against the DMK veteran is that he and his son Sundeep Anand have subscribed to 70,000 shares and 2,00,000 shares respectively in a Singapore firm, M/s Silver Park International Pte Ltd, without securing the approval of the Reserve Bank of India. These shares were in turn transferred to the family members which is in in contravention of FEMA rules, the agency had said. Earlier, a search on the premises and establishments of the MP had yielded seizure of Rs 20 crore cash. Of this Rs 5 crore was recovered from his residence in Chennai.