ED seizes Rs 48 crore assets of Ahmedabad firm

AHMEDABAD: The Enforcement Directorate (ED) has seized properties worth Rs 48.87 crore belonging to Ahmedabad-based Sintex Industries Limited in connection with transactions made by its directors’ in the

Panama

Papers case.

“ED has seized properties, including land pieces admeasuring 1,09,542 square metre and 18,309 square metre worth Rs 48.87 crore (equivalent to US $3 million) in the form of immovable assets of M/s Sintex Industries Ltd, Ahmedabad, under Section 37A of

Foreign Exchange

Management Act, 1999,” an official said.

“The names of the company’s directors, Amit Patel and Rahul Patel, had figured in the Panama Papers case with respect to their stakes and interests in Amarange Inc (of British Virgin Islands). Accordingly, investigations under Foreign Exchange Management Act (FEMA), 1999, were initiated by the ED,” the official said.

The official further said that investigation had also revealed that Sintex Industries Limited had remitted Euro 73.05 million to Sintex Holding BV at Netherlands (WOS) in the period May 26, 2007 to July 27, 2009, as overseas direct investment.

“Amit Patel is the director of the overseas company. Further, Sintex Holding BV, Netherlands, had created a wholly owned subsidiary named Amarange Inc which was incorporated in British Virgin Islands (BVI) with Amit Patel and Rahul Patel as its directors,” the ED official said.

The funds remitted as overseas direct investment by Sintex Industries Limited, were utilised by Sintex Holding BV, Netherlands, for acquiring a property in Singapore.

“In 2009, Sintex Holding BV, Netherlands, attempted to sell Amarange Inc, BVI to Hanca Investment Ltd, BVI for US $8.20 million. For this, Sintex Holding BV, Netherlands had received US $3 million but due to default in the payment of the balance amount of US $5.20 million by Hanca Investment Ltd, BVI, Sintex Holding BV forfeited US $3 million and the share sale was annulled. Sintex Holding BV, Netherlands, remained the beneficial owner of Amarange Inc, BVI,” the official said.

“Further, during 2017, the property in Singapore was sold for Singapore $62,50,000 and, consequently, Sintex Holding BV, Netherlands, dissolved Amarange Inc, BVI, on August 8 this year having engaged in no business or activity except for the purchase and sale of Singapore property,” the official said.

He further said that both these transactions of — US $3 million and Singapore $62,50,000 — were shown as income for Sintex Holdings BV, Netherlands, and never brought back to India.

“Thus, Sintex Industries Limited had violated the provisions of FEMA and that a total of Rs48,87,22,500 is still being held outside India as a result of the said transfers,” the official said.