Chennai, Dec 28 (Agency) The Enforcement Directorate (ED) today seized assets worth Rs. 293.91 crore belonging to former Tamil Nadu Mercantile Bank Chairman Nesamanimaran Muthu alias MGM Maran under the Foreign Exchange Management Act (FEMA), 1999. The seized assets are in the form of shareholdings in four Indian companies, the ED said in a statement. The companies are Southern Agrifurane Industries Private Limited; Anand Transport Private Limited; MGM Entertainment Private Limited and MGM Diamond Beach Resorts Private Limited. Mr. Muthu incorporated two companies in Singapore during the financial year 2005-06 and 2006-07 and invested SGD 5,29,86,250 equivalent to Indian Rs.293.91 crore.
This investment was made without taking approval from RBI. Further the source of such a huge investment abroad was not disclosed to the Indian Regulators. It said the provisions of section 37A(1) empowers the ED to seize Indian asset of a person, who has acquired Assets in foreign country or made investment outside India without the approval of RBI while he was a person Resident in India. Since the amount of foreign investment was SGD 5,29,86,250, the assets of equivalent value thereof of Rs. 293.91 crore has been seized. Further investigation is in progress.