Bhopal, July 23 (SocialNews.XYZ) The Directorate of Enforcement (ED), Bhopal Zonal Office, has seized an immovable property worth Rs 3.67 crore in Jabalpur under the relevant provisions of the Foreign Exchange Management Act (FEMA), 1999, an official statement said on Thursday.
The property, belonging to Priyank Mehta, was confiscated following findings of contravention of FEMA provisions.
The action stemmed from specific inputs provided by the Income Tax Department and subsequent investigation by the ED.
Officials discovered that Mehta had remitted USD 548,000 under the Liberalised Remittance Scheme (LRS) for investment in the EB-5 Visa Programme in the United States. However, a substantial portion of the funds -- USD 502,954 -- was not utilised for the stated purpose.
Instead of repatriating the refunded amount to India, Mehta transferred it directly from the United States to Portugal.
Further inquiries revealed that the refunded sum was combined with additional remittances from India and used to acquire immovable property in Portugal. The remaining balance continued to be retained in a foreign bank account in Portugal.
According to ED, the acquisition, holding, and utilisation of foreign exchange and assets abroad violated Section 4 read with Section 10(6) of FEMA, 1999.
Exercising powers under FEMA, the ED seized Mehta’s property in Jabalpur, valued at approximately Rs 3.67 crore, equivalent to the foreign exchange amount held outside India in violation of FEMA provisions, the ED said.
Officials emphasised that such actions are part of ongoing efforts to curb misuse of foreign exchange remittances and ensure compliance with regulatory frameworks.
The ED confirmed that further investigation into the case is underway, with a focus on tracing additional transactions and assets linked to the alleged violations.
The development underscores the agency’s vigilance in monitoring cross-border financial activities and its determination to act against individuals attempting to circumvent legal provisions governing foreign exchange.
This directorate of enforcement is increasing scrutiny of overseas investments made under the LRS and the consequences of misusing remitted funds.
The seizure marks another significant enforcement action by the ED in Madhya Pradesh, reinforcing its mandate to uphold the integrity of India’s financial system.
Source: IANS
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