ED seizes assets worth 293 cr of former Tamilnad Mercantile Bank chairman

The Enforcement Directorate on Tuesday said that it has seized assets worth Rs 293.91 crore of Nesamanimaran Muthu alias MGM Maran, former chairman of Tamilnad Mercantile Bank Limited, under the provisions of Foreign Exchange Management Act (FEMA), 1999. Further investigations are underway, the probe agency added.

The seized assets are in the form of shareholdings in four Indian Companies namely; (1) Southern Agrifurane Industries Private Limited; (2) Anand Transport Private Limited; (3) MGM Entertainment Private Limited and (4) MGM Diamond Beach Resorts Private Limited, ED stated. 

The agency said in a statement that Muthu had incorporated two companies in Singapore during 2005-06 and 2006-07 financial years and invested SGD 5,29,86,250 (equivalent to Rs 293.91 crore). ''This investment was made without taking approval from the RBI. Further, the source of such a huge investment abroad was not disclosed to the Indian regulators,'' ED added.

Section 37A(1) of the Foreign Exchange Management Act (FEMA) empowers the ED to seize domestic assets of a person who has acquired properties in a foreign country or made investment outside India without the approval of the RBI while he was a Indian resident.