The Enforcement Directorate here has seized movable properties of ₹1.59 crore of Pradip D Kothari, Chairman and Managing Director, Kothari Industrial Corporation Ltd, under the provisions of the Foreign Exchange Management Act (FEMA), according to an official press release.
A case was investigated against Kothari in respect of credit of foreign exchange to the tune of $3,52,258.25 held in HSBC Bank, Geneva. This was suspected to be held outside India and thereby contravened the provisions of Section 4 of FEMA, says a ED Chennai in a press release.
During investigation, it was admitted that the amount was kept in foreign accounts without proper permission from the RBI and without declaring the same to tax authorities. Further, Kothari could not produce any evidence to show that the amount was repatriated to India, the release said.
ED Chennai also seized ₹1.59 crore of Kothari’s, held in his demat account with Axis Bank, under the provisions of Section 37A of FEMA.