ED attaches Rs 205 cr Assets of MGM Maran/ Anand/ Group

Under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), the Enforcement Directorate (ED) has provisionally attached assets worth Rs 205.36 crore belonging to MGM Maran, MGM Anand, and their company, “Southern Agrifurane Industries Pvt Ltd” (MGM Group).

ED attaches Rs 205 cr Assets of MGM Maran/ Anand/ Group

MGM Maran was the Chairman of Tamilnad Mercantile Bank Limited (TMBL) in 2007, when he and other directors and officials of TMBL facilitated the sale of 23.60% of TMB shares from Indian shareholders to unauthorised overseas persons.

During the same time period, MGM Maran secretly acquired foreign investments with a total value of Rs 293.91 crore that were made directly outside of India. These investments were made without permission from the RBI, and the money for them came from sources that are unknown and very questionable.

Later, MGM Maran gave up his Indian citizenship and instead became a citizen of Cyprus so that he could avoid being prosecuted for breaking Indian law. MGM Maran also began transferring his wealth from India to abroad in order to keep it out of the hands of Indian law enforcement agencies.This was accomplished through “direct overseas investments” from the Indian firm “Southern Agrifurane Industries Pvt Ltd.”

When AD Bank and Axis Bank complained, the Central Crime Branch in Chennai (CCB) filed a first information report (FIR), and the ED did the same by filing an electronic crime information report (ECIR).

In the month of October 2022, the company filed a Writ Petition against ED proceedings before the Hon’ble Madras High Court and obtained an interim stay by making false representations before the Court. ED explained the entire background and facts of the case in its detailed counter-affidavit. As a result, the Hon’ble Madras High Court dismissed the Writ petition filed by the company in a landmark decision dated December 19, 2022, holding that the company, by making false declarations, induced the AD Bank to deliver valuable foreign exchange, and that such remittance in the hands of the company’s wholly owned subsidiaries located outside India would constitute the proceeds of crime.

As a result, the ED has provisionally attached the proceeds of crime in the form of entire shareholdings in all prominent MGM Group companies in India held by both Maran and Anand, lands and buildings in “Southern Agrifurane Industries Pvt Ltd,” and Maran’s entire shareholding (3.31%) in TMBL (recently listed on the BSE). Further investigation is in progress at the end of the ED.

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