Panama leaks: ED seizes foreign assets worth Rs 7 crore from Delhi jeweller

The Panama Papers, that was brought to the fore by the International Consortium of Investigative Journalists (ICIJ) a few years ago, had about 500 Indian names in it.

The Enforcement Directorate (ED) on Thursday seized foreign assets worth Rs 7 crore of Delhi-based Mehrasons Jewellers in connection with its probe into foreign exchange violation in the Panama Papers leak case.

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The probe agency said the seizure was the first ever under section 37A of the Foreign Exchange Management Act (FEMA), 1999.

“During the course of investigation under FEMA,1999, it was found that huge amounts were sent out of India by misutilising the scheme of Liberalised Remittance Scheme (LRS) of RBI in the garb of making investments abroad by AK Mehra, Deepak Mehra, Shailini Mehra and Naveen Mehra ( Mehrasons Jewellers of Delhi),” the agency said in a statement.

“The amount remitted outside India was given as interest-free loan in individual capacity by the said persons to two companies in British Virgin Island and were later transferred to a company in UAE, which is owned by one of the said persons. As on date, around Rs 10.54 crore is still parked outside India illegally by the said persons,” the directorate added. htc

The business entity was identified by the ED as Mehrasons Jewellers.

The agency said it was the first instance of seizure of foreign assets after the Foreign Exchange Management Act (FEMA) was amended recently and the ED was empowered to take action in cases where illegal assets were stashed abroad.

The amendment was made by the government in Section 37A of the FEMA.

The Panama Papers, that was brought to the fore by the International Consortium of Investigative Journalists (ICIJ) a few years ago, had about 500 Indian names in it. They were alleged to have stashed assets abroad illegally.