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Baadshah, Singham, Shahenshah come under ED spotlight for forex remittances e

Discussion in 'Internal Affairs' started by Zer0reZ, Jul 22, 2017.

  1. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    MUMBAI: It's not just Shah Rukh Khan who is battling a barrage of questions from the Enforcement Directorate. All members of the Bachchan family have been asked by the government agency to share details of their foreign exchange remittances over the past 13 years. Bollywood action hero Ajay Devgn has also received a notice from the agency seeking information on his cross-border remittances.

    Amitabh Bachchan, wife Jaya, son Abhishek, daughter-in-law Aishwarya and Devgn were served notices a little over a month ago under Section 37 of the Foreign Exchange Management Act (Fema) which empowers ED to obtain preliminary information before starting an investigation.

    “Mr Bachchan and his family members have to disclose outflows since 2004 – the year when the Reserve Bank of India introduced the Liberalised Remittance Scheme (LRS). ED is probably examining the remittances under LRS and those separately done for business trips…All transactions have been through banking channels,” an industry person told ET.

    ED’s enquiry pertaining to Khan’s transactions relates to his allotment of shares of the Indian Premier League franchisee to a Mauritius-based company of Jay Mehta, husband of Juhi Chawla — Bollywood’s actor of the ’90s.

    Even though the deal valuation was cleared by the Reserve Bank of India, ED has questioned the deal price. “In case of SRK, ED thinks that forex inflow from the deal was lower than what it should have been.

    In the matter of Bachchans and Devgn, the question is whether remittances during the years were in excess of what individuals were permitted under forex regulations,” said a banker who deals with high net worth individuals.

    Text messages and calls to spokespersons for Bachchans and Devgn went unanswered.

    LRS WINDOW
    Under LRS — which was introduced by RBI to let Indians invest in stocks and properties abroad — a person can remit up to $250,000 a year. It was an opportunity for many Indian families to invest in properties in the UK and Dubai. Earlier, a separate and an additional limit of $25,000 for 45 days was allowed to individuals making business trips – on the back of undertakings given by the person and a chartered accountant. This window was regularly used by actors, performers, lawyers and consultants who had to make frequent overseas travel. There was no upper limit on the number of such business trips. However, about a year ago, the separate $25,000 remittance limit for a single business trip by an individual was merged with the LRS limit.

    But, unlike the cap applicable for an individual, there are no ceilings on the number of business trips by an official of a company. It is unclear at this stage whether ED would pursue any investigation on the basis of information shared by Bachchans and Devgn. “One is not sure what ED is looking for since till recently there were separate remittance limits for personal and business trips,” said an industry source.

    According to bankers and lawyers, in the past few months the Directorate has made several inquiries relating to Fema violations – some of which are procedural in nature.

    “Half a dozen real estate companies have been asked to explain the background and details of NRIs who invested in their projects. A few companies have been questioned for failing to report their foreign collaboration and allotment of shares to foreign investors to Reserve Bank of India,” said a person who is advising some of these companies which received foreign direct investment.

    Read more at:
    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
     
  2. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    GoI is really keeping check all that foreign funding to India, same goes for thousands of NGOs though US wasn't happy for that and now bollywood won't either.
     

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