ED seizes Rs 86 crore worth Q City properties in city

News Meter Network, Hyderabad

Enforcement Directorate on Wednesday seized Rs 86 crore worth of the assets of Q-City Tech Park located at Gachibowli. The Q city is owned by Mack Soft Tech Private Limited in connection with Foreign Exchange Management Act violation case. ED alleged that the Mack Soft Tech did ‘sham transactions’ in the guise of buying software and transferred money to Hongkong.

Several top companies like Amazon and TCS operates on a tenancy from Q-City Tech Park. ED in an official statement said that investigation under FEMA into Mack Soft found that huge funds were remitted outside India in contravention of the act.

“Investigation revealed that Mack Soft illegally transferred foreign exchange to the tune of Rs 62 crore to Orient Guide Investments Limited in Hong Kong under the guise of purchase of a non-existent fake software license. From November 2011 to December 2016 Mack Soft transferred foreign exchange to the tune of Rs 24 crore to one Senat Legal Consultancy FZ LLC in UAE and Cresco Legal Consultancy FZ LLC in UAE in the name of legal services. It was proved that this was a sham transaction these foreign outward remittances on the pretext of purchase of Software License & Legal Services were made by Mack with a view to siphon off funds from India and park them abroad,” said Enforcement Directorate in the statement. The Illegal holding of foreign assets outside the country is a contravention of Sec 4 of FEMA and ED is empowered to seize equivalent assets in India under section 37A of FEMA. Orient Guide Investments was incorporated in 2011 February in Hongkong.

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