The Enforcement Directorate (ED) has recently made headlines with a notable move to seize six immovable properties located in the states of Maharashtra and Karnataka. These properties, collectively valued at INR 24.64 Crore, belong to M/s Venkateshwara Hatcheries Pvt. Ltd. The action has been carried out under the provisions of Section 37A of the Foreign Exchange Management Act (FEMA), 1999.
The FEMA, enacted with the objective of regulating foreign exchange transactions and preserving the country’s monetary stability, empowers the ED to take such measures when it suspects that certain transactions or properties are involved in money laundering activities or other violations of the law.
“M/s Venkateshwara Hatcheries Pvt. Ltd, a company engaged in the poultry business, has come under ED’s scrutiny due to suspected irregularities in foreign exchange transactions. The ED’s move to seize these properties is part of its ongoing efforts to curb financial malpractices and enforce strict compliance with FEMA regulations”.
The properties seized by the ED include both residential and commercial assets situated in prime locations within Maharashtra and Karnataka. By taking this action, the ED aims to send a strong message that financial wrongdoing will not be tolerated, and those found guilty will face legal consequences.
“Under Section 37A of FEMA, the ED is authorized to seize, freeze, or attach foreign exchange, foreign security, and immovable properties located within India when it believes that these assets are involved in a contravention of FEMA regulations. This section provides the ED with the necessary legal tools to investigate and take action against individuals or entities engaging in unlawful financial activities that could harm the country’s economic stability”.
