ED seizes properties of Venkateshwara Hatcheries in Maharashtra, Karnataka; assets worth Rs 65 crore
The ED had initiated an investigation in connection with the illegal remittances made by the company since 2011 to date to its wholly owned subsidiary Venky’s Overseas Limited (VOL), UK.
By Newsmeter Network Published on 4 Sep 2023 10:27 AM GMT
Maharashtra: The Directorate of Enforcement (ED) has seized nine immovable properties in Maharashtra and Karnataka of Venkateshwara Hatcheries Pvt Ltd (VHPL) under the provisions of the Foreign Exchange Management Act (FEMA),1999. The estimated worth of the properties is said to be around Rs 65.53 crores.
The ED had initiated an investigation in connection with the illegal remittances made by the company since 2011 to date to its wholly owned subsidiary Venky’s Overseas Limited (VOL), UK.
The investigation revealed that VHPL declared the business of VOL to the Reserve Bank of India (RBI) as Agriculture and Mining (Rearing of ducks, hens etc.). After the incorporation of VOL, VHPL remitted huge funds in the guise of equity infusion. However, no such business activity was ever initiated by VOL even more than 11 years after its incorporation.
UK Manor bought with company’s money
The ED investigation further revealed that VHPL had made remittances to the tune of GBP 73,96,069, equivalent to Rs 65.53 crores to VOL since its incorporation till date. VOL, immediately after its incorporation, had purchased an immovable property named ‘Alexander House’ having a total area of 90 acres in the United Kingdom through the funds remitted by VHPL to provide private convenience to the directors and employees of VHPL.
Further, all the funds remitted by VHPL to VOL subsequently were utilised for repayment of a loan obtained by VOL from Barclays Bank in the UK which was taken for the acquisition of said immovable property.
Investigation established that VHPL had no intention to conduct bonafide business through its subsidiary VOL and it was created as a front to purchase an immovable property in the UK for the ultimate enjoyment by the directors, employees and family members of VHPL.
Therefore, the equivalent value of properties held in India has been seized under the provisions of Section 37A of FEMA.
Further investigation is in progress.
