FEMA violation: ED confiscates Agri land of former `Laundry Spot' director

The NRI businessman had allegedly violated Section 6 (3) (1) of the Foreign Exchange Management Act and Regulation 3 (a) of the Foreign Exchange Management (Acquisition & Transfer of Immovable Properties In India) Regulations.

A penalty of Rs 21.96 lakh has also been imposed on the directors and promoters of Laundry Spot Private Limited.

An ED spokesman said they initiated investigations under the provisions of the Foreign Exchange Management Act, 1999 against Laundry Spot Private Limited, Directors/promoters, for having received Foreign Direct Investment of Rs 2,66,10,000 from an NRI, during 2016 and failed to fulfill regulatory requirements.

"They failed to fulfill regulatory requirements prescribed by RBI with respect to Foreign Direct Investment received by Indian company viz submission of Advance Reporting form, delay in issuance of shares to foreign investors within the specified time period, failing to submit FC-GPR forms and filing of Annual Return on Foreign Liabilities & Assets to RBI for the Foreign Direct Investment received by an Indian company, as per the provisions of FEMA, 1999," he said.

Investigations under FEMA further revealed that an NRI had acquired agricultural land measuring 4.26 acre in contravention of FEMA.