New Delhi, Aug 9 Enforcement Directorate (ED) on Wednesday said that it has issued a seizure order under section 37A (1) of FEMA, against Estate of late Anil Salgaocar and seized the shares held by this estate in connection with the foreign assets held by Salgaocar outside India.
The ED initiated investigation against Salgaocar based on Panama Paper leaks where it was alleged that the Anil Vassudeva Salgaocar resident of Goa had incorporated multiple BVI companies.
The ED Investigation revealed that Salgaocar owned iron ore mines in Goa and Karnataka and the iron ore produced by these mines were sold through his Indian group companies exclusively to the SPVs (Special Purpose Vehicle) in BVI and Singapore.
These SPVs were not declared before Indian authorities and they acted as trading companies indulging in sale of iron ore produced in India to China which resulted in profit shifting outside India.
The five BVI companies of Salgaocar derived profit amounting to around USD 690,650,641 (approximately Rs 5718 Crore) through Salgaocar’s iron ore trading activities. The same was not declared before the Indian authorities.
“Hence by acquiring foreign exchange and holding assets outside India, Late Anil Salgaocar contravened the provisions of section 4 of FEMA, for a total amount of USD 69,06,50,641 (Rs. 5718 Crore).
“Accordingly, the entire shareholding of Late Anil Salgaocar which has been transferred to Estate of Late Anil Salgaocar, in all 33 companies which varies from 1 per cent to 99.9 per cent has been seized by ED. These said 33 companies own 441 immovable properties located mainly at Goa and few at Mumbai and Karnataka,” said the ED.
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