SEIZED | Business Upturn

ED seizes properties worth Rs 41.64 Crore in FEMA case against Pune businessman

News Desk — Mon, 08 May 2023 16:31:18 +0000

In a case filed under the Foreign Exchange Management Act (FEMA) against businessman Zavareh Soli Poonawalla and his family in Pune, India, the Directorate of Enforcement (ED) confiscated three immovable properties valued at Rs 41.64 crore.

The Economic Intelligence Unit is looking into allegations that Zavareh Soli Poonawalla and his family violated the FEMA by abusing the Liberalised Remittance Scheme (LRS). His involvement with offshore companies was revealed in the Panama Papers.

According to the ED’s findings, Zavareh Soli Poonawalla and his family illegally sent money overseas using the LRS scheme. Money was sent overseas through mids-declarations during 2011 and 2012 using the full allowable amount for the purposes of ‘family maintenance and self-maintenance. The ED stressed that “no one in their immediate family was living abroad or had NRI status.”

Allegedly, the Pune businessman and his family used LRS abrogated money to buy four homes in the United Kingdom via a company called Stallast Limited, situated in the British Virgin Islands. The Executive Director mentioned four flats in Paddington, London.

Multiple violations of FEMA rules were observed in these deals. Poonawalla and his family falsely claimed these assets were international portfolio investments and also misrepresented the source of the remittances. However, in actuality, they exerted entire control over the foreign corporation. No report of the overseas holdings was filed with the RBI. To this day, they still own those overseas holdings and are really enjoying them,” the ED said.

Iran’s Revolutionary Guard seized U.S. “Advantage Sweet” fleet vessel says US Navy

News Desk — Thu, 27 Apr 2023 14:43:39 +0000

The US Navy’s Mideast-based 5th fleet vessel that is identified by the name Advantage Sweet was seized by Iran’s paramilitary Revolutionary Guard.

The Marshall Island-flagged oil tanker in the Gulf of Oman was seized by Iran, said the US Navy, this is amid wider tensions over Tehran’s nuclear program.

Satellite tracking data showed Sweet in the Gulf of Oman just north of Oman’s capital, Muscat, on Thursday afternoon. It had just travelled from Kuwait and listed its destination as Houston, Texas.

The 5th fleet, which Advantage Sweet belonged too, said that it was at least the fifth commercial vessel taken by Tehran in the last two years.

“Iran’s continued harassment of vessels and interference with navigational rights in regional waters are a threat to maritime security and the global economy,” it added.

At 1:15 p.m. a distress call was issued by the vessel as it was being seized by Tehran said the Navy.

“Iran’s actions are contrary to international law and disruptive to regional security and stability,” the 5th Fleet said in a statement. “Iran should immediately release the oil tanker.

These incidents began after then-President Donald Trump unilaterally withdrew the States from Iran’s nuclear deal with world powers, which then saw Tehran drastically limit its enrichment of Uranium in exchange for lifting economic sanctions.

The ED seized Rs. 40.34 crore assets of Pune based Avinash Bhosale

Aayushi Singh — Tue, 22 Jun 2021 12:37:44 +0000

Enforcement Directorate (ED) seized assets over Rs 40 crore, including equity and preference shares in the three luxury hotels of the Pune-based builder Avinash Bhosale and his family members in a probe linked to the alleged violations of the forex law.

The agency said that those properties had been seized as an equivalent value of the foreign securities or properties held by Bhosale and his family members in contravention of the Foreign Exchange Management Act (FEMA), 1999 which provides for seizure of the equivalent situated in India for the foreign security or the immovable properties held outside India.

The ED said that the attached assets were in the form of an equity shares and preference shares held in Classic City Investment Pvt Limited, Pune, which owns the three luxury hotels in the five star category. The bank balance of around Rs. 1.15 crore that were in the bank accounts held in the name of Bhosale and his family members along with the Equity shares held in ABIL, had been seized.

FEMA investigation against Bhosale and his family first began in September 2017. The agency said that an they received an information that Bhosale and his family members had acquired some assets in Dubai in contravention of the FEMA.

The ED reported that Bhosale and his family members acquired foreign securities of a company Rochdale Associates Limited, Dubai, which held immovable property of worth AED 20,000,000 i.e. approx Rs 40.34 crore, and to acquire the property, Bhosale and his family members remitted the funds through Liberalised Remittance Scheme in their bank accounts held outside of India. It also claimed that the funds were remitted in different categories like for the purchase of equity shares in Rochdale Associates Limited, Family maintenance, savings received from NRI for family maintenance, etc.

The ED also reported that the remitted funds had been utilised to purchase the said immovable property and the shares of the company were allotted against the remitted funds, it was also declared that the company had engaged in the real estate business activity, and that the investigation revealed that company did not have any business activity and was generating no income.

In February the Enforcement Directorate also raided some of the premises linked to Bhosale in places like Pune, Mumbai and Kolhapur of Maharashtra and questioned Bhosale and his son under the provisions of the FEMA.