Hyderabad: The Enforcement Directorate (ED) on Wednesday seized assets of M/s Mack Soft Tech Private Limited – Hyderabad, in the form of Q-City Tech Park consisting of 2,500 square yards of land and 2.45 lakh square feet of building space, worth `86.38 crore.
Mack Soft-Tech Private Limited, a Hyderabad-based firm tat deals with retail trade (not in stores) was incorporated in the year 2003. MSTPL operates from its registered office, Q-City, a landmark building in the IT hub at Hitec City. The company leases out office premises; global giants in Information Technology have offices in Q-City.
On July 26, 2019, the company’s status showed active. It has five directors and one key management personnel. The directors are Lalit Ahluwalia, Robert Philip Dix, Eugene Pacelli Mccague, Joseph William Jackson, and Paul Mcgowan.
On Wednesday, the ED booked it under the Foreign Exchange Management Act, 1999 (FEMA).
The ED had initiated the probe under FEMA on the basis of information that M/s MSTPL remitted huge funds outside India in contravention of FEMA. During the course of the investigation, it was found that M/s MSTPL illegally transferred foreign exchange amounting to Rs 62.08 crore to Orient Guide Investment Ltd, Hong Kong, under the guise of purchasing a non-existent software licence.
According to the Enforcement Directorate, during the period from November 2011 to December 2016, the company transferred foreign exchange amounting to Rs 24.30 crore to Senat Legal Consultancy FZ LLC, UAE, and Cresco Legal Consultancy FZ — LLC, UAE purportedly for legal services.
The Enforcement Directorate’s investigation revealed that these transactions are a sham. “The above foreign outward remittance on the pretext of purchases of software licence and legal services were made by M/s MSTPL with a view to siphon off funds from India and park them abroad. Illegal holding of foreign assets outside the country is a contravention of Section 4 of FEMA and, accordingly, the ED has initiated action to seize equivalent assets in India in the form of physical assets of Q-City Tech Park, which is worth Rs 86.38 crore. The properties are attached under section 37A of FEMA,” said the ED authorities.
