Poonawalla kin remitted money abroad via mis-declarations: ED

MUMBAI: The ED said that its investigation revealed that “Zavareh Soli Poonawalla and his family members had remitted foreign exchange abroad by mis-utilising the provisions of LRS (Liberalised Remittance Scheme).

They used the maximum permissible limit and from the year 2011-12, they remitted money abroad via mis-declarations under the pretext of family maintenance and self-maintenance etc, however none of their family members was residing abroad or holding NRI status.”

A press release issued by the ED said, “His name was found in the Panama Papers revelations regarding off-shore entities.”

The central agency is investigating the alleged violations pertaining to offshore accounts of Indians, including Bollywood celebrities and businessmen, in Panama papers leaks under the Foreign Exchange Management Act (FEMA).

The entire funds remitted were invested into Stallast Limited based in the British Virgin Island, which had utilised it to purchase properties in the UK, including four apartments at Paddington, London, alleged the ED. The agency said that multiple FEMA contraventions were seen in these transactions.

Apart from mis-declarations in the remittances, Zavareh Soli Poonawalla and his family members wrongly claimed these investments as foreign portfolio investments, but in reality, the foreign entity was completely controlled by them and thus, they did ODI in a foreign WoS without due permission of the RBI. The foreign assets were not declared to RBI. They continued to hold above foreign assets till date and are in continuous enjoyment of the same, alleged the the probing agency.