New Delhi: The Enforcement Directorate on Wednesday slapped a Rs 8,600 crore show-cause notice on construction major Emaar MGF Land Ltd and its sister firms for alleged forex rules violation, the biggest such penal action in country's real estate sector. The agency, which began an investigation in 2010 with regard to the group bringing in Foreign Direct Investment (FDI), alleged that the firm has violated the rules stipulated by the RBI in this regard and hence it stands guilty of "contravention of foreign exchange rules" stipulated under the Foreign Exchange Management Act (FEMA).
The agency claimed to have found in its probe that the group had disclosed to RBI that it is bringing FDI for developing construction related projects in India but it used the funds for purchasing agricultural land, which is a violation of rules framed by the banking and FDI regulator of the country. "We have not received any communication from government authorities and hence we are not in a position to comment. We emphasise that the company continues to uphold the highest standards of corporate governance and follows the laws of the land," a spokesperson for Emaar MGF said in an email statement.
It is expected, sources said, that the penalty proceedings against these violations would also be undertaken which could take up the total penalty amount to Rs 25,000 crore which is 300 per cent of the violations detected. The agency, which enforces forex laws in the country, found that funds were received by
10:54 PM, Jun 04, 2013
New Delhi: Enforcement Directorate may have seized assets worth Rs 2,357 crore in 2012-13, a seven fold increase from previous fiscal, but it sees the cases of money laundering, forex violations and other economic offences probed by it as just the "tip of the iceberg". The ED has stepped up its prosecution in money laundering cases and is planning to take steps, including filling 1,400 posts, to go full throttle...
05:20 PM, May 01, 2013
A day after the player auctions for Indian Premier League Season 6, the Enforcement Directorate has slapped a notice of Rs 100 crore on the Indian Premier League franchise Rajasthan Royals over alleged violations of the Foreign Exchage Management Act (FEMA). ...
03:50 PM, Feb 04, 2013
Paving the way for FDI in multi-brand retail, the government has tabled the amended rules of the Foreign Exchange Management Act (FEMA) in both houses of Parliament. The amendments are crucial for the government to notify FDI in retail, a segment in which trade is currently restricted under the FEMA rules. ...
01:12 PM, Nov 30, 2012
New Delhi: The Supreme Court has come to the government's rescue on Foreign Direct Investment (FDI) in the retail sector. The Supreme Court has asked the government to amend the Foreign Exchange Management Act (FEMA) regulations to implement FDI in retail. The court said that the RBI has till date not amended the regulation which will legitimise government's FDI policy. The government has now asked RBI to amend FEMA regulations...
01:56 PM, Oct 15, 2012
New Delhi: In UPA's summer of discontent, it continues to rain scams. The Central Bureau of Investigation (CBI) had unearthed a huge forex derivatives scam, pegged at Rs 32,000 crore which has been conveniently brushed under the carpet by the government for three years. On January 4, 2012, Parliament's Public Accounts Committee (PAC) had sent a reminder to the Ministry of Finance, seeking an explanation on the alleged scam in...
09:01 AM, Jun 03, 2012
Mumbai: The Reserve Bank on Thursday directed banks to exercise caution with respect to online forex trading by Indian residents where margin payments through a credit card or deposit are required in view of the risk of fraud. "... Banks should exercise due caution and be extra vigilant in respect of the transactions that require residents to make margin payments for online forex trading transactions through credit cards/deposits in various...
03:51 PM, Nov 17, 2011
New Delhi: The Enforcement Directorate will attach an estimated Rs 50 crore of assets of Pune stud farm owner and alleged tax defaulter Hasan Ali Khan and his Kolkata-based associate Kashinath Tapuriah in a money laundering case. The Adjudicating Authority of the agency based in Delhi recently endorsed an order of ED's Mumbai office in this regard, paving way for attachment of the duo's immovable properties in Mumbai, Pune and...
01:05 PM, Nov 04, 2011
Mumbai: Refusing to grant bail to Pune-based stud farm owner Hasan Ali Khan, accused of stashing away billions of dollars in overseas accounts, the Bombay High Court on Friday asked him to approach the special court handling Prevention of Money Laundering Act cases. Disposing of Khan's bail application, Justice RC Chavan told his lawyer that "why have you come here directly instead of moving the special court as directed by...
06:10 PM, Apr 29, 2011
Mumbai: The Income Tax Department on Friday imposed a huge penalty of Rs 40,000 crore on businessman Hasan Ali Khan, a 56-year-old alleged stud-farm owner and one of the main accused in the multi-million dollar tax evasion and money laundering case. Hasan Ali on Friday presented himself before the Income Tax Department in Mumbai, after summon was issued to Hasan Ali by the Tax Department in connection with penalty proceedings...
06:45 PM, Feb 18, 2011
Hasan Ali is under scanner for doing illegal work running into crores of rupees. ...
01:31 PM, Jan 01, 2009
