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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

Bombay HC warns Vijay Mallya against posting court documents on social media

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Mumbai, Sep 22: The Bombay High Court warned “Fugitive Economic Offender” UK-based businessman Vijay Mallya against posting court documents on social media while the money laundering matter being investigated by the Enforcement Directorate (ED) is still being heard, a lawyer said on Tuesday.

Advocate Ashish Mehta said that High Court’s direction to the fugitive businessman, allegedly present in the UK, followed the ED’s objection to Mallya uploading the probe agency’s affidavit on social media platform X even before the court had considered its contents.

Posting the matter for hearing on October 13, the High Court directed the State Bank of India (SBI) to file a fresh affidavit taking into account the disclosures made by the ED.

Earlier, Mallya had told the High Court in February that he was not in a position to specify when he would return to India.

He cited restrictions imposed by courts in England that he said prevented him from leaving the country.

The High Court was hearing two petitions filed by Mallya.

One petition challenges his designation as a “Fugitive Economic Offender” under the Fugitive Economic Offenders Act (FEOA), while the other contests a court order formally declaring him a fugitive.

Senior advocate Amit Desai, appearing for Mallya, had referred to Supreme Court judgments where writ petitions were heard even in the absence of petitioners.

He had submitted that extradition proceedings against Mallya are ongoing in the UK and that his client is aware of them but is unable to leave the English jurisdiction due to binding court orders.

The High Court, however, questioned Mallya’s intent to appear before the court, saying that he appeared to be relying on UK court orders without clarifying whether those orders had been challenged.

The Bench indicated that such reliance could not be treated as a blanket justification.

The court had directed Solicitor General Tushar Mehta to file a response to Mallya’s affidavit.

It also asked Desai to submit a detailed affidavit placing on record all statements made during the hearing so that the Union of India could respond accordingly.

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Crime

Big schemes pointless if women’s safety can’t be ensured, says Priyanka Gandhi on Jamui case

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Wayanad (Kerala), Sep 22: Condemning the Bihar student’s molestation case, Congress MP Priyanka Gandhi Vadra on Tuesday said that the Central and state governments should figure out ways to ensure women’s safety at a time when crimes against women are increasing with each passing day.

Speaking to reporters in Wayanad, Priyanka Gandhi said, “It’s horrible, and crimes against women are increasing. Crimes against women are just increasing. It’s become unsafe for women. It was always unsafe; it has just become more and more increasingly violent towards women.”

“I think there’s no point talking about big schemes and programmes if we can’t even ensure the safety of women on our streets. So it’s really something that all of us need to think about. Wherever there are state governments, and especially the central government, they need to think about how they are going to ensure that women feel safe,” she added.

Priyanka Gandhi’s remarks came as the Jamui molestation incident sent shockwaves across Bihar and beyond.

The incident took place late on Saturday evening in the Madwa Pahar area of Jamui district, where a minor girl student was allegedly stopped and molested by a group of youths while returning from the area. A male student accompanying her was also allegedly assaulted, according to the FIR.

The matter came to light after a video of the incident began circulating on social media on Sunday evening, prompting the district administration to contact the victim’s family and register a case.

Jamui police have arrested Nandan Yadav, the alleged prime accused in the molestation and harassment of a minor girl student, following a police encounter in which he sustained a gunshot injury to his leg, officials said on Tuesday.

He has been admitted to a hospital for treatment.

Investigators identified Yadav through a viral video of the incident. Police said he was the youth seen wearing a red gamchha in the footage that surfaced on social media.

Police have also arrested Ramashish Chaudhary, who is accused of circulating the video online. With the latest arrests, five people have been taken into custody in connection with the case so far, including three juveniles.

Additionally, police said FIRs have been registered against operators of 120 social media profiles across multiple platforms for alleged violations related to the circulation of the content. They said that the individuals are accused of sharing the video or disclosing information that could reveal the identity of the minor victim.

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Crime

Python used for dance during Ganesh immersion in Hyderabad rescued

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Hyderabad, Sep 22: The dance by a woman with a python around her neck during the Ganesh immersion procession in Hyderabad has created a stir.

A dance group from Visakhapatnam used an Indian Rock Python during a Ganesh immersion procession in Jawhar Nagar.

The Greater Hyderabad Society for Prevention of Cruelty to Animals (GHSPCA) and police rescued the python and a hen used in the dance performance on Sunday night.

Members of GHSPCA, along with the police officers from Madhura Nagar Police Station, took action when the group from Visakhapatnam was performing during the Ganesh immersion procession.

According to GHSPCA, the python was found with an oral infection. It is now under veterinary care.

The rescue operation was conducted after the group was tracked for nearly five days by the GHSPCA with the help of police.

The python is a protected species under the Wildlife (Protection) Act, 1972.

GHSPCA members had been tracking the group following information that a live snake was allegedly being used in public shows.

The group, including women, had been performing at various places in Hyderabad as part of the ongoing Ganesh Chaturthi festivities.

The group from Visakhapatnam had performed at Kondapur on September 19. However, the snake handler fled before the GHSPCA team could apprehend him. The next day, the team, in coordination with the police, managed to catch him. A python and a hen were found in his possession.

On a complaint by the animal activists, police registered a case and took up further investigation.

Last year, the GHSPCA rescued eight cobras from snake charmers in Hyderabad. The snake charmers were displaying cobras by keeping them in crates at Sri Yellamma Thali Devalayam, Suramgutta, under the limits of Adibatla Police Station.

The organisation has been appealing to people to inform them if they spot snake charmers. Its volunteers work actively during Naga Panchami to rescue snakes.

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