The Enforcement Directorate (ED) on Wednesday imposed a fine of ₹908 crore on DMK MP S Jagathrakshakan and his family in a FEMA violation case. The central agency also seized assets worth ₹89 crore belonging to the DMK MP in the case.
“ED, Chennai had conducted investigation under FEMA against Jagathrakshakan, a businessman from Tamil Nadu and Member of Parliament, his family members and related Indian entity. The properties worth Rs. 89.19 Crore which was seized in terms of Section 37A of FEMA was also ordered for confiscation, and penalty of Rs.908 Crore (approx.) is levied vide Adjudication Order passed on 26/08/2024,” the Enforcement Directorate said in its statement.
Over the past few months, ED and the Income Tax department raided multiple properties and the residence of the Arakkonam MP. Over 40 properties of the former Union Minister were searched in relation to the illegal transaction case filed against him and his family.
Who is S Jagathrakshakan?
DMK leader S Jagathrakshakan is a Tamil businessman and Lok Sabha MP from the Arakkonam. He has been elected thrice from this seat since 1999. He is the chairman of Shree Balaji Medical College and Hospital and the owner of Dr Rela Hospital and Institute.
{{/usCountry}}DMK leader S Jagathrakshakan is a Tamil businessman and Lok Sabha MP from the Arakkonam. He has been elected thrice from this seat since 1999. He is the chairman of Shree Balaji Medical College and Hospital and the owner of Dr Rela Hospital and Institute.
{{/usCountry}}The businessman-politician has been at the centre of controversy due to his exponential growth in assets over the span of just two years. In 2009, Jagathrakshakan declared assets worth ₹5 crore, and then in 2011, he reported assets worth ₹70 crore, recording the highest percentage rise of assets among all ministers in the central cabinet.
Read more: ED fines DMK MP S Jagathrakshakan, family ₹908 crore in FEMA case
He was also accused of being involved in the coal scam in Tamil Nadu in 2012, for allegedly granting illegal coal allocations to his company in 2007. Years later, a sting operation also exposed that his medical college was demanding inflated fees from MBBS students.
In 2019, Sri Lanka's Board of Investments announced a multi-billion dollar plan to open an oil refinery in Hambantota, with the DMK MP's two children and wife listed as the board of directors of the company making the investment. It was also stated that Jagathrakshakan's firm is funding 70 per cent of the project, prompting an ED investigation on the source of the funds and FEMA violations.