FEMA CASE: DMK MP, kin fined Rs 908 crore

New Delhi, August 28

The Enforcement Directorate (ED) imposed a fine of Rs 908 crore on DMK MP S Jagathrakshakan and his family in a Foreign Exchange Management Act (FEMA) case. The agency said the amount included confiscated assets worth Rs 89 crore.

Jagathrakshakan was a former minister of state for information and broadcasting in the erstwhile UPA regime. At present, he is MP from the Arakkonam Lok Sabha seat in Tamil Nadu.

The ED, Chennai, conducted a probe under FEMA against Tamil Nadu MP and businessman Jagathrakshakan, along with his family members and associated Indian entities. Properties valued at ~89.19 crore, seized under Section 37A of FEMA, were ordered for confiscation, the ED said in a statement.

Additionally, a penalty of approximately ~908 crore was levied through an adjudication order issued on Monday, it added.

“The properties worth Rs 89.19 crore, which were seized in terms of Section 37A of FEMA, were also ordered for confiscation, and a penalty of ~908 crore is levied,” the ED said further.

On December 1, 2021, the central agency filed a complaint against DMK MP Jagathrakshakan, his family members and a related company under Section 16 of FEMA, the ED said in a statement.

The ED charges them for violation of FEMA provisions, particularly regarding an investment of Rs 42 crore in a shell company in Singapore in 2017, acquisition and transfer of Singaporean shares among family members, and an investment of around ~9 crore in a Sri Lankan entity. The complaint also sought the confiscation of properties seized on September 11, 2020.

After a thorough review of the alleged violations and written replies submitted, it was determined that the violations were clearly established, the ED said in the statement.

The DMK is a key ally of the INDIA bloc and has 22 MPs in the alliance. It is the fourth largest member of the opposition alliance after the Congress, Samajwadi Party and TMC.

About Jagathrakshakan

• DMK MP S Jagathrakshakan was a former minister of state for information and broadcasting in the erstwhile UPA regime. At present, he is MP from the Arakkonam Lok Sabha seat in Tamil Nadu.
• The DMK is a key ally of the INDIA bloc and has 22 MPs in the alliance. It is the fourth largest member of the opposition alliance after the Congress, Samajwadi Party and TMC.