Crime
ED seizes unlisted shares worth Rs 293.91 cr of ‘MGM’ Maran

The Enforcement Directorate (ED) on Tuesday said it has seized assets worth Rs 293.91 crore belonging to Tamilnad Mercantile Bank’s (TMB) former Chairman Nesamanimaran Muthu alias MGM Maran under the Foreign Exchange Management Act (FEMA).
According to the ED, the seized assets are in the form of shareholdings in four Indian companies, namely, the Southern Agrifurane Industries Private Ltd, Anand Transport Private Ltd, MGM Entertainment Private Ltd, and MGM Diamond Beach Resorts Private Ltd.
Incidentally, the three of the companies are unlisted entitites.
The ED said Maran had incorporated two companies in Singapore during 2005-06 and 2006-07 and invested Singapore $5,29,86,250 equivalent to Indian Rs 293.91 crore, but the investment was made without Reserve Bank of India’s (RBI) permission and non-disclosure to Indian regulators.
According to the agency, the provisions of Section 37A(1) empowers it to seize Indian asset of a person who has acquired assets in foreign country or made investment outside India without the approval of the RBI while he was a person resident in India.
Since the amount of foreign investment was SGD 5,29,86,250, the assets of equivalent value thereof of Rs 293.91 crore has been seized, it said.
Last year, the Adjudicating Authority under the FEMA had levied a penalty of Rs 35 crore on Maran for opening a bank account in Singapore and receiving foreign exchange to the tune of US$ 68,50,000 (equivalent to Rs 28.08 crore) in that account from a foreign entity.
The said payment is the consideration for facilitating and assigning the rights towards transfer of shares of the TMB in favour of Katra Holdings Ltd, consequent to a private agreement with that company. The penalty is also for failing to repatriate the said foreign exchange into India, the ED had said then.
The Adjudicating Authority had also fined Standard Chartered Bank Rs 100 crore and the TMB Rs 17 crore.
The ED had taken up the probe under FEMA based on reference received from the RBI to investigate advance remittances received by certain entities for purchase of the shares of the Tuticorin-headquartered TMB through escrow mechanism maintained with Standard Chartered Bank, Mumbai.
Following the probe, the ED had issued show cause notice to the TMB, its directors, Standard Chartered Bank and one of its officials for contravening FEMA.
In his adjudication order, the Special Director, ED, Southern Region imposed a penalty of Rs 11.33 crore on the TMB for recording in its books the transfer of 46,862 shares of the bank in the names of seven foreign entities viz. (i) RST Ltd (wholly owned by Ravi S. Trehan), Katra Holdings Ltd (wholly owned by Ramesh Vangal), GHI I Ltd (wholly owned by Rajat Gupta), Kamehameha (Mauritius) Ltd, FI Investments (Mauritius) Ltd, Cuna Group (Mauritius) Ltd, and Swiss Re Investors (Mauritius) Ltd.
The above seven entitities were not approved by the RBI for acquiring the shares of TMB.
A further penalty of Rs 5.66 crore was imposed on the TMB for its act of recording in its books, the subsequent transfer of 27,289 shares out of the above 46,862 shares in the names of two foreign entities – Sub-Continental Equities Ltd, Mauritius and Robert & Adris James Company Ltd, Mauritius, without the permission of the RBI.
Penalty has also been imposed on the directors of the Board of the TMB, who approved the recording of the transfer of shares of the bank.
The Standard Chartered Bank was held guilty of contravening FEMA for opening the Standard Chartered Bank Project Windmill (Sale Consideration) Escrow Account, without the RBI’s prior permission and for allowing deposits of Rs 113 crore and for having held 1,12,151 shares of the TMB in the said escrow account.
A penalty of Rs 34 crore was levied on the bank for the above contraventions.
Another Rs 66 crore penalty was levied on the Standard Chartered Bank for providing collateral/guarantee/taking into custody of TMB shares and original sale deeds of land in lieu of which Standard Chartered Bank, Mauritius granted a loan of US$ 55.40 million (equivalent to Rs 221 crore) to three foreign entities viz, Katra Holdings Ltd, Mauritius, RST Ltd, Cayman Islands, and GHI I Ltd, Cayman Islands, without any special permission from the RBI.
Crime
Encroachments along Adyar River in TN bulldozed on Madras HC order

Chennai, May 22: Following stern directives from the Madras High Court, authorities have initiated the removal of encroachments along the Adyar riverbank in Tamil Nadu’s Anakaputhur, with plans to complete the process within a week.
The court had recently issued a three-month deadline to the Tamil Nadu government to eliminate all encroachments obstructing the Adyar River Restoration Project.
Responding to this, the Water Resources Department on Wednesday began demolishing illegal structures, including around 50 houses in Anakaputhur. Officials confirmed that this is the first phase of the eviction drive.
The removal will continue in downstream areas such as Thideer Nagar, Jyothi Ammal Nagar, Surya Nagar, and Malligaipoo Nagar in Saidapet and Kotturpuram in the coming weeks.
An official from the Water Resources Department stated, “We will proceed with the clearance, one neighbourhood at a time, as per the court’s directive. The project had been delayed for years due to the presence of these encroachments.”
The state’s Additional Advocate-General J. Ravindran informed the court that the encroachments had halted progress on the Adyar River Restoration Project — a major initiative worth Rs 1,500 crore announced in three consecutive budgets since 2023.
Due to the obstructions, contractors were unable to prepare a detailed project report, stalling the project indefinitely.
In Anakaputhur alone, 593 families residing in areas such as Quaid-e-Milleth Nagar, Thai Moogambikai Nagar, Santhai Nagar, and MGR Nagar Third Street are being evicted. However, the state government is providing alternative housing to the affected families.
“Each displaced family will be allotted a 390-square-foot house at no cost. These houses, valued at Rs 17 lakh each, are located in Talaivaram, Keerapakkam, Perumbakkam, and Navalur,” the official added.
The Adyar River Restoration Project aims to rejuvenate the heavily polluted waterway and prevent urban flooding — a recurring issue during Chennai’s monsoon seasons. The successful removal of encroachments is expected to pave the way for its long-awaited implementation.
Crime
Online sex racket busted in Mumbai: 28-year-old man arrested, woman rescued

Mumbai, May 21: The Amboli Police in Mumbai have busted an online sex racket operating out of the Andheri area, leading to the arrest of a 28-year-old man allegedly running the illegal operation, officials said on Wednesday.
A 30-year-old woman, believed to have been forced into prostitution, was rescued during the operation.
The accused has been identified as Sarfaraz alias Mohammad Gulab Phoolbabu Sheikh, a resident of Versova in Andheri.
According to police, Sarfaraz was using mobile phones and messaging apps like WhatsApp to operate the racket, offering women to clients at various hotels, lodges, and guest houses across the city based on demand.
Police launched an undercover operation following a tip-off. A decoy customer contacted Sarfaraz, who then shared several photographs of women via WhatsApp for selection. Once a woman was chosen, the financial deal was also finalised over the phone.
As per the plan, Sarfaraz was asked to bring the woman to a hotel on Veera Desai Road in Andheri. When he arrived at the hotel with the woman and began negotiating with the fake client, police officers who were already stationed nearby swooped in and detained him for questioning.
During preliminary interrogation, the rescued woman told police that Sarfaraz had brought her to the hotel for prostitution. She was immediately taken for a medical check-up and later sent to a private rescue and rehabilitation centre in Kandivali for further care.
Police have registered a case against Sarfaraz under Section 143 of the Bharatiya Nyaya Sanhita (BNS) and relevant sections of the Prevention of Immoral Trafficking Act (PITA).
Further investigation is underway to ascertain the scale of the operation and identify others who may be involved in the sex racket.
Officials said more arrests are likely as the accused is being interrogated for details on his network, including customers, others, and women who may have been trafficked or coerced into the trade.
Crime
Liquor scam: ACB-EOW raid 22 locations in Chhattisgarh

Raipur, May 20: The investigators in Chhattisgarh have ramped up efforts to uncover the details of a massive liquor scam, estimated to be worth Rs 2,000 crore.
The Economic Offence Wing (EOW) and the Anti-Corruption Bureau (ACB) have launched a series of coordinated raids across multiple districts, including Durg-Bhilai and Mahasamund.
Reports suggest that enforcement teams are actively conducting operations at 22 locations in Durg-Bhilai, after arriving in Bhilai on Tuesday morning in four vehicles.
Additional searches are underway in Sankara and Basna within the Mahasamund district, focusing on individuals closely associated with former Excise Minister Kawasi Lakhma, sources said.
The authorities have expanded their scrutiny to business establishments, with EOW teams inspecting the residences of individuals suspected of involvement in the scam.
The investigation has widened to the Mahasamund district, where the enforcement teams had raided the premises of a businessman and an LIC agent believed to be linked to the illicit liquor trade.
The ACB and EOW teams have executed searches at more than 20 locations across the state, targeting key figures involved in the operation.
The investigation has caused a significant stir, with officials continuing to uncover crucial evidence.
The Enforcement Directorate arrested former Excise Minister Kawasi Lakhma on January 15 after multiple rounds of interrogation.
The ACB and EOW registered an FIR in January 2024 based on a letter from the Enforcement Directorate.
Recent findings indicate that the scam, which allegedly took place between 2019 and 2022, resulted in substantial financial losses to the state exchequer while generating illegal profits exceeding Rs 2,100 crore.
The syndicate behind the scam reportedly includes senior bureaucrats, politicians, and excise department officials.
The authorities have confiscated cash, electronic devices, bank records, and land investment documents from suspects’ residences earlier. The investigation remains active as officials work to expose the full extent of the fraudulent activities.
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