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Crime

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

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 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

Drunk Dial 112 driver hits cyclist, motorcycle in Bihar’s Muzaffarpur

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Patna, Aug 31: A Dial 112 emergency vehicle driver was accused of driving under the influence of alcohol and hitting a cyclist and a motorcycle in Muzaffarpur’s Ramdayalu area on Monday.

The incident, which falls under the jurisdiction of Sadar Police Station, triggered anger among local residents.

Police subsequently took the driver, identified as Santosh Kumar, into custody.

According to police, the detained driver underwent a medical examination, which confirmed alcohol consumption.

Further legal action is being taken in the matter. Meanwhile, the injured cyclist has submitted an application at Sadar Police Station seeking registration of an FIR.

According to preliminary information, Santosh Kumar was driving the Dial 112 vehicle through the Ramdayalu area when it allegedly first struck a cyclist.

The cyclist, Shatrughan Rai, a resident of Baramatpur under the Sadar police station area, sustained serious injuries, including injuries to both legs. The vehicle subsequently collided with a motorcycle.

The motorcyclist, identified as Manish Kumar of Chak Chameli village under the Hajipur Sadar police station area of Vaishali district, escaped with minor injuries, but his motorcycle was badly damaged.

The incident led to a gathering of local residents, who raised an alarm and confronted the driver over allegations of drunk driving.

Locals informed the police, following which a Sadar Police team reached the spot and took Santosh Kumar into custody. Manish Kumar said he was travelling from his home in Hajipur to Muzaffarpur when he witnessed the Dial 112 vehicle hit the cyclist.

He said the emergency vehicle then struck his motorcycle with considerable force, causing extensive damage. Manish further alleged that when he and others confronted the driver following the accident, the driver used abusive language.

The situation was subsequently brought under control after police reached the spot and took the driver to the police station.

Muzaffarpur SSP Kantesh Kumar Mishra said the incident had come to the police’s notice and that the accused driver was being questioned.

He said further action would be taken in accordance with the law after completion of the investigation and that steps would be taken to seek judicial custody of the accused.

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Crime

3-year-old nursery student sexually assaulted at Delhi school; bus driver arrested

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New Delhi, Aug 31: A case involving the sexual assault of a three-year-old nursery student at a private school in Delhi Bawana has come to light. Police have arrested a school bus driver in connection with the incident, officials said on Monday.

The accused, identified as Vikas, had been working as a bus driver at the school for around eight months. According to police, he allegedly befriended the child by offering her chocolates and subsequently sexually abused her on multiple occasions.

Police arrested Vikas from the school premises after the child’s identity and allegations were established during the investigation.

The case came to light on the night of August 19, when the child’s family noticed injury marks on her body and became concerned about her condition.

When the child’s mother questioned her about what had happened, the girl reportedly spoke about a “bad uncle” at her school who used to give her chocolates. As the three-year-old was unable to identify the man by name, the family approached the school administration and sought its help in finding out who the person was.

On August 24, the child was shown photographs of school staff and CCTV footage from the school premises as part of efforts to identify the person she had mentioned. Police said the girl identified Vikas as the man she had referred to as the “bad uncle”.

Following the identification, the school informed the police about the matter. An FIR was subsequently registered under the relevant provisions of the Protection of Children from Sexual Offences (POCSO) Act, following which the accused school bus driver was arrested.

According to the allegations being investigated by police, the accused followed the girl when she was going towards the bathroom. He allegedly offered her chocolates and then touched her inappropriately under the stairs of the school.

During the investigation, police also seized the accused’s mobile phone. Officials said the device contained several videos showing him feeding chocolates to young children.

Police are now working to identify the children seen in those videos. The children are also being counselled as part of the ongoing investigation and to ensure their safety and well-being.

Investigators have also collected and seized CCTV footage from cameras installed at different locations on the school premises. The footage is being examined to establish the sequence of events and determine whether there were any other instances involving the accused.

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Crime

16-year-old gang-raped in moving sleeper bus in UP, abandoned at Delhi’s Kashmere Gate

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New Delhi, Aug 31: A 16-year-old girl was gang-raped inside an empty sleeper bus by its driver and conductor in Greater Noida earlier this month, police said on Monday, adding that both accused have been arrested in connection with the case.

According to police, the incident took place near Pari Chowk on August 4. The survivor alleged in her complaint that the two accused sexually assaulted her and threatened to kill her if she resisted. They later abandoned her near Kashmere Gate in Delhi.

The accused, identified as driver Kuldeep and conductor Sandeep, were arrested from a parking area in Timarpur on the same day.

Police have seized the bus and sent it for forensic examination. Investigators have also collected CCTV footage from the route taken by the bus as part of the probe. Police said the footage is being examined to establish the sequence of events and trace the movements of the vehicle.

The teenager is a resident of Mainpuri in Uttar Pradesh. Police said she had left her home without informing her family after her mother reprimanded her over her studies. She was travelling to Noida Sector 63, where her cousin lives.

According to the girl’s statement to police, she mistakenly got down at Pari Chowk amid heavy rain and darkness. After realising that she had reached the wrong location, she tried to find another vehicle and eventually stopped the sleeper bus. Police said there were no passengers inside the bus at the time.

The conductor allegedly told the girl that the bus was heading towards NoidaSector 63, following which she boarded the vehicle. Police said the bus was actually returning empty after undergoing repairs at a workshop in Surajpur.

The girl alleged that soon after the bus began moving, the conductor started behaving inappropriately towards her. She further alleged that both men then sexually assaulted her and threatened to kill her if she resisted.

After the assault, the two accused abandoned the girl near Ring Road in Delhi’s Kashmere Gate and fled from the spot. She subsequently approached the police and reported the incident, following which an investigation was launched.

Kuldeep and Sandeep have been booked under charges relating to gang rape, kidnapping and assault.

Police said the sleeper bus had curtains covering the individual berths, which may have provided privacy inside the vehicle during the alleged crime.

As part of the forensic investigation, teams recovered strands of the girl’s hair from inside the bus. The vehicle has been seized, and forensic examination is being conducted to collect further evidence that could support the investigation.

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