The Directorate of Enforcement (ED) has taken possession of 100% shares of MGM Maran and MGM Anand in four MGM group of companies in India namely Southern Agrifurane Industries Private Limited, Anand Transport Private Limited, MGM Entertainment Private Limited ,and MGM Diamond Beach Resorts Pvt.
The central agency has also seized 52,39,959 equity shares (representing 3.31%) of MGM Maran in Tamilnad Mercantile Bank Limited (TMBL), recently listed on the Bombay Stock Exchange (BSE) , under the provisions of Prevention of Money Laundering Act (PMLA), 2002.
MGM Maran was the chairman of TMBL in 2007 when he along with other directors and officials facilitated a deal of sale of 23.60% shares of TMB from Indian shareholders to unauthorised overseas persons. It was also found that Mr. Maran acquired undisclosed foreign investments of ₹293.91 crore directly outside India during the same period.
The ED in a statement said such undisclosed investments were without the approval of RBI as well as from unexplained and highly dubious sources.
“ED investigation revealed that MGM Maran, soon after being subjected to ED investigation, started removing his wealth to outside India with sole objective to keep the same out of the reach of Indian Law Enforcement Agencies in the garb of Overseas Direct Investments (ODI) and in pursuance of the same had got Cyprus citizenship in 2016,” the agency said in a release.
As per the Provisional Attachment Order dated 23.12.2022, the ED attached proceeds of crime under PMLA as equivalent value in the form of entire shareholding of both MGM Maran and MGM Anand in all prominent MGM Group of companies in India, lands and buildings in Southern Agrifurane Industries Pvt Ltd as well as shareholding of Maran in TMBL being 3.31 %. Subsequently, the order was confirmed by the Adjudicating Authority in June 2023.
Invoking the provisions of Section 8(4) of PMLA, the ED has taken possession of the confirmed attached properties as per notice dated 16.11.2023.
