The enforcement directorate (ED) has again summoned Raninder Singh, son of Punjab Congress chief Capt Amarinder Singh, for alleged violations of Foreign Exchange Management Act (FEMA), asking him to appear on July 14. The agency is looking into Raninder’s assets and his role, if any, in alleged hawala transactions.
Earlier, he was called on June 16, but he did not appear. Raninder was asked to appear before the agency to explain the alleged movement of funds to Switzerland and the creation of a trust and a few subsidiaries in the tax haven of British Virgin Islands.
The ED initiated action following a complaint by the income tax department which claims that Raninder lied under oath to the department about trusts allegedly owned by him in British Virgin Islands.
The income tax department had found that Raninder was the settler (donor) of the Jacaranda Trust, the UK, and owner of business entities Mulwala Holdings Limited, Limerlock International Limited, Chillingham Holdings Limited and Allworth Venture Holdings Limited.
The authorities in the British Virgin Islands informed the department that the business entities were holding substantial financial assets, including bank accounts in HSBC, Geneva, and properties in the UK and Dubai.
The authorities provided the I-T department with a copy of the trust deed which showed that the settlement was made on July 22, 2005, in British Virgin Islands between Raninder and HSBC Trust Company Limited. Raninder acted as a trustee.
However, Raninder had said he had nothing to hide and was willing to cooperate on the issue. “This was already being looked into by the income tax authorities. We have nothing to hide and we will cooperate with the ED,” he had said.