Enforcement Directorate (ED) has seized assets worth ₹293.91 crore of Nesamanimaran Muthu alias MGM Maran, former chairman of Tamilnad Mercantile Bank Ltd, under the provisions of Foreign Exchange Management Act (FEMA), 1999.

The seized assets are in the form of shareholdings in four Indian companies - Southern Agrifurane Industries Private Limited; Anand Transport Private Limited; MGM Entertainment Private Limited and MGM Diamond Beach Resorts Private Limited, says a release from ED.

Muthu incorporated two companies in Singapore during 2005-06 and 2006-07 and invested SGD 5,29,86,250 equivalent to Indian ₹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.

The provisions of Section 37A(1) empowers the ED to seize Indian assets of a person who has acquired assets in a foreign country or made investments outside India without the approval of RBI while he was a resident in India.

Since the amount of foreign investment was SGD 5,29,86,250, the assets of equivalent value thereof of ₹293.91 crore has been seized, the release said.