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ED fines DMK MP S Jagathrakshakan and family ₹908 crore in FEMA case
DMK MP S Jagathrakshakan and family fined ₹908 crore by ED in FEMA case, ₹89 crore assets seized.
The Enforcement Directorate (ED) has fined DMK MP S Jagathrakshakan and his family ₹908 crore in a Foreign Exchange Management Act (FEMA) case. The agency said the amount includes confiscated assets worth ₹89 crore.
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The ED in Chennai conducted a probe under FEMA against Tamil Nadu MP and businessman Jagathrakshakan, along with his family members and associated Indian entities. Properties valued at Rs. 89.19 crore, seized under Section 37A of FEMA, were ordered for confiscation, ED said in an X post.
Additionally, a penalty of approximately ₹908 crore was levied through an Adjudication Order issued on Monday, it added.
"The properties worth ₹89.19 crore which were seized in terms of section 37A of FEMA were also ordered for confiscation, and penalty of ₹908 crore is levied vide Adjudication Order dated 26/08/2024," the ED said.
Who is S Jagathrakshakan?
S Jagathratchakan, 76, represents the Arakkonam Lok Sabha seat on DMK ticket. He is the founder of the Chennai-based Accord Group, which has interests in hospitality, pharmaceuticals, liquor manufacturing. He owns Bharath Institute of Higher Education and Research (BIHER).
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What is the ED case against DMK MP S Jagathrakshakan?
On December 1, 2021, the central agency filed a FEMA complaint under Section 16 of FEMA against DMK MP Jagathrakshakan, his family members, and a related company, ED said in an statement.
The complaint charged them with violating various FEMA provisions, particularly regarding an investment of ₹42 crore in a shell company in Singapore in 2017, the acquisition and transfer of Singaporean shares among family members, and an investment of around Rs. 9 crore in a Sri Lankan entity. The complaint also sought the confiscation of properties seized on September 11, 2020.
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After a thorough review of the alleged violations and the written replies submitted, it was determined that the violations were clearly established, ED said in the statement.
