The Enforcement Directorate (ED) has attached three properties worth ₹24.95 crore belonging to Hero MotoCorp executive chairman Pawan Munjal in connection with a money laundering probe, while alleging that businessman used foreign currency issued in the name of others for his personal expenditure abroad to override RBI rules.
The agency alleged that foreign currency equivalent to ₹54 crore was illegally taken out of India by Munjal and others.
The financial crimes probe agency had raided Munjal and others in August this year.
It said on Friday in a statement that immovable properties (in the form of lands) of Munjal located in Delhi have been attached under the provisions of Prevention of Money Laundering Act (PMLA). The assets attached are worth ₹24.95 crore, it said.
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“Investigation revealed that Pawan Kant Munjal got issued foreign exchange/foreign currency in the name of other persons and thereafter utilised the same for his personal expenditure abroad,” ED said in its statement.
“The foreign currency/foreign exchange was drawn from authorised dealers by an event management company in the name of various employees and thereafter handed over to Munjal’s relationship manager. The relationship manager carried such foreign currency/foreign exchange in cash/card secretly, for the personal expenditure of Pawan Kant Munjal during his personal/business trips. The modus was adopted to override the limits of USD 2.5 lakh per annum per person under the Liberalised Remittance Scheme (LRS),” it added.
{{/usCountry}}“The foreign currency/foreign exchange was drawn from authorised dealers by an event management company in the name of various employees and thereafter handed over to Munjal’s relationship manager. The relationship manager carried such foreign currency/foreign exchange in cash/card secretly, for the personal expenditure of Pawan Kant Munjal during his personal/business trips. The modus was adopted to override the limits of USD 2.5 lakh per annum per person under the Liberalised Remittance Scheme (LRS),” it added.
{{/usCountry}}Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April-March) for any permissible current or capital account transaction or a combination of both, according to the Reserve Bank of India.
ED’s PMLA case is based on a Directorate of Revenue Intelligence (DRI) charge sheet, filed under the Companies Act of 1962, that accused him of taking foreign exchange/currency out of India illegally.
“The prosecution complaint alleges that foreign currency/foreign exchange equivalent to ₹54 crore was illegally taken out of India,” the ED said.
After the August raids, the ED had seized valuables worth ₹25 crore of various accused persons.