FEMA: ED seizes Rs 65.53 cr. worth properties of Venkateshwara Hatcheries
HYDERABAD: The Directorate of Enforcement (ED) on Monday seized nine immovable properties in Maharashtra and Karnataka worth Rs 65.53 crore belonging to Venkateshwara Hatcheries Pvt. Ltd (VHPL), under the Foreign Exchange Management Act (FEMA), 1999.
Popular retailer Venky's Chicken is part of VHPL.
The ED had initiated investigation in connection with the illegal remittances made by the company since 2011 to its wholly-owned subsidiary, Venky’s Overseas Limited (VOL) in the UK.
Investigations revealed that VHPL in its declaration with the RBI mentioned that VOL was into agriculture and mining (rearing ducks and hen) and had remitted huge amounts as equity infusion. VOL never initiated such a such business activity, the ED alleged.
The ED said investigations had revealed that VHPL had made remittances of £73,96,069 (Rs 65.53 crore) to VOL since its incorporation. VOL purchased immovable property ‘Alexander House’ spread over 90 acres in the United Kingdom through the funds remitted by VHPL for the ‘convenience’ of its directors and employees.
Funds remitted to VOL were utilised to repay loans obtained by VOL from Barclays Bank, which was taken for acquisition of the said immovable property, the ED said. Properties in India of an equivalent value have been seized under the provisions of Section 37A of FEMA.
