In a major development, the ENforecemet Directorate (ED) of Jalandhar unit has confiscated immovable assets worth Rs 22.02 crore of Rana Sugars Ltd under Section 37A of the Foreign Exchange Management Act (FEMA), 1999 for holding foreign currency outside India. As per reports, the company is owned by Kapurthala Congress MLA Rana Gurjit Singh and Sultanpur Lodhi MLA Rana Inder Pratap Singh, along with other family members. The ED’s action comes following violations detected during its probe.
The central investigative agency on its X handle informed, "ED, Jalandhar has seized immovable properties worth Rs. 22.02 Crore of M/s Rana Sugars Ltd under section 37A of the Foreign Exchange Management Act (FEMA), 1999 for holding foreign exchange outside India in contravention of Section 4 of FEMA,1999."
As per reports, ED in its investigation has found that that Rana Sugars Ltd did not repatriate the full GDR proceeds to India, thereby violating Section 4 of FEMA, 1999. Rana Sugars reportedly retained $2.56 million (Rs 22.02 crore) abroad, leading to the seizure of assets. The ED is continuing its investigation into the case.
For the unversed, last year, the Securities and Exchange Board of India (SEBI) imposed a Rs 63 crore penalty on Rana Sugars Ltd for allegedly transferring funds to personal entities through GDR-related transactions.
In February this year, the Income Tax (I-T) Department took major action against Congress MLA Rana Gurjeet Singh in Kapurthala, Punjab. The I-T teams from Ludhiana also raided the house and mill of the Ranas in Kapurthala and his houses in Sectors 4 and 9 and Flat No 53 in the MLA’s hostel in Chandigarh.