The Enforcement Directorate (ED) has issued an order under Foreign Exchange Management Act (FEMA), 1999, for seizure of Goa, Mumbai and Karnataka-based estate of Late Anil Vassudeva Salgaocar, who was into iron ore mining, and seized its shares too after the businessman’s name figured in the Panama Paper leaks and Pandora Paper leaks which disclosed black money of people statched abroad in different countries.

The agency stated that its investigation revealed that produce of Salgaocar-owned iron ore mines in Goa and Karnataka were sold and exported through his Indian group companies exclusively to the Special Purpose Vehicle (SPVs) in British Virgin Islands (BVI), the British overseas territory in Carabean, and Singapore. “These SPVs were not declared before Indian authorities and they acted as trading companies indulging in sale of iron ore produced in India to China which resulted in profit shifting outside India,” the ED alleged in a statement.

Five BVI companies of Late Anil Salgaocar derived profit amounting to around USD 690,650,641 which worked out to approximately ₹5,718 crore through iron ore trading activities, the agency revealed. The same was not declared before the Indian authorities, it pointed out.

“Hence by acquiring foreign exchange and holding assets outside India, Late Anil Salgaocar contravened the provisions of section 4 of FEMA, 1999 for a total amount of USD 69,06,50,641 (approx. ₹5718 Crore). Accordingly, the entire shareholding of Late Anil Salgaocar which has been transferred to Estate of Late Anil Salgaocar, in all 33 companies which varies from one per cent to 99.9 per cent has been seized by ED,” the agency stated.

As per the ED, these 33 companies owned 441 immovable properties located mainly at Goa and few at Mumbai and Karnataka.

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