Lagatar24 Desk
Chennai: S Jagathrakshagan, a five-time DMK MP and former Union Minister, has been hit with a staggering ₹908 crore penalty by the Enforcement Directorate (ED) for violating foreign exchange regulations. The central agency, following an in-depth investigation, also seized assets worth ₹89 crore belonging to the 76-year-old leader.
Jagathrakshagan, who represents Arakkonam in Tamil Nadu, is not only a seasoned politician but also a prominent businessman with a chain of colleges and hospitals under his name.
According to the ED, the investigation was conducted under the Foreign Exchange Management Act (FEMA), targeting Jagathrakshagan, his family members, and an associated Indian entity. The agency took to social media platform X to announce, “The properties worth ₹89.19 Crore, seized under Section 37A of FEMA, have been ordered for confiscation. Additionally, a penalty of ₹908 Crore has been levied through an Adjudication Order passed on 26/08/2024.”
The case centers around Jagathrakshagan and his son Sundeep Aanand’s illegal acquisition of shares in a Singapore-based company, M/s. Silver Park International Pte. Ltd., without obtaining the necessary approvals from the Reserve Bank of India (RBI). The ED uncovered that Jagathrakshagan had subscribed to 70,00,000 shares, while his son acquired 20,00,000 shares.
Further investigation led to the discovery of ₹20 crore in unaccounted cash during a search of Jagathrakshagan’s premises, including ₹5 crore found at one of his residences. The ED asserted that the assets seized in India were equivalent to the value of the “illegally acquired, held, and transferred foreign security” in the Singapore-based firm, in violation of FEMA.
The ED’s action is rooted in Section 37A of FEMA, which empowers the agency to seize assets within India equivalent to the value of any foreign exchange, foreign security, or immovable property suspected to be held abroad in contravention of the act.
As of now, neither Jagathrakshagan nor the ruling DMK party has issued a response to the ED’s actions.
