Pakistani singer Adnan Sami is in trouble again.
This time, it is for not taking the necessary permissions required by a foreign national to purchase properties in Mumbai.
The Enforcement Directorate (ED) has issued a show-cause notice to the singer in this regard.
As per the rule, a foreign national needs to have the Reserve Bank of India’s (RBI) permission before acquiring property in India. The foreign national also has to justify a property purchase.
The ED, during its investigation, had questioned Sami in February this year, as well as back in 2009, over the purchase of flats in Lokhandwala, Andheri, in 2003 without the permission of the RBI.
Sami had filed an application for purchase of property with the RBI in 2002. However, the RBI rejected it. Despite this, he purchased 8 flats in the Oberoi Sky Garden building in Lokhandwala in 2003. He bought all the flats for a total price of Rs 2.5 crore.
An ED official, requesting anonymity, said that the show cause notice asks Sami to justify why he should not be penalized for acquiring properties in Mumbai without taking the necessary permissions.
About the next step, the official said the department would initiate a procedure to confiscate the properties.
“We have sufficient evidence to show that the properties were purchased without complying with the law,” the official said. The ED has registered a case under section 6(3)(i) of Foreign Exchange Management Act (FEMA).
If Sami is proven guilty, besides confiscation, he would be levied a penalty which would range from a 100 to 300 per cent of the total investment in all the properties.
When contacted, Sami’s lawyer, Vibhav Krishna said that they have not yet received the notice.
He said that Sami had visited the ED in February and they are unaware of any developments after that. ED officials said that the notice would reach Sami by Thursday. He also said that Sami was presently out of country. ED officials said that the notice would reach Sami by Thursday.