Rs 908 Crore Fine On DMK MP Jagathrakshakan Levied By Enforcement Directorate For FEMA Violations

The Enforcement Directorate (ED) has levied a penalty of approximately Rs 908 crore against a member of parliament (MP) of Dravida Munnetra Kazhagam (DMK) S Jagathrakshakan.

This comes after an investigation under the Foreign Exchange Management Act (FEMA) against Jagathrakshakan for his business and properties of his family members in Tamil Nadu.

The ED also ordered the confiscation of the properties worth Rs 89.19 crore which were seized in September 2020 as per Section 37A of FEMA.

Jagathrakshakan is accused of acquiring foreign securities from a Singapore-based company in violation of Section 4 of the FEMA.

He has been under the Income Tax (I-T) department and ED's lens for several years. In 2016, I-T authorities raided his multiple homes and business establishments.

Reportedly, more than Rs 20 crore of unaccounted money was seized during the raid including Rs 5 crore in cash seized from one of his residences.

Then starting from 5 October 2023, the I-T department conducted another set of searches seizing cash worth Rs 4.5 crore and 2.7 kilograms of gold were from Jagathrakshakan’s residence.