Chennai, Nov 10 (IANS) DMK Lok Sabha MP S. Jagathrakshakan and his two children on Tuesday moved the Madras High Court, challenging the Enforcement Directorate (ED)’s seizure of properties valued at Rs 45.34 crore in connection with alleged foreign exchange violations involving a Singapore-based company.
The legal challenge comes amid allegations that the Parliamentarian and his family members violated provisions of the Foreign Exchange Management Act (FEMA), 1999, in transactions involving overseas shares valued at Rs 161.12 crore.
Jagathrakshakan, who represents the Arakkonam Parliamentary constituency, has filed separate appeals along with his son J. Sundeep Anand, associated with the Tamilaga Vettri Kazhagam (TVK), and daughter J. Sri Nisha.
A First Division bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan admitted the appeals and issued notice to the ED, seeking its response.
The petitioners have challenged a May 21, 2026, order of the FEMA Appellate Tribunal in New Delhi, which had partially upheld the central agency’s seizure proceedings.
The controversy centres on Silver Park International Pte. Limited, incorporated in Singapore on June 15, 2017.
According to company records examined by investigators, Jagathrakshakan initially held 70 lakh equity shares, while his son possessed 20 lakh shares.
Another shareholder, V.T. Thiagarajan, held 10 lakh shares.
Each share carried a nominal value of one Singapore dollar.
The ED initiated its investigation after Jagathrakshakan disclosed in his election affidavit that he had served as a director of the Singapore company between June 2017 and September 2018.
Investigators subsequently found that the Reserve Bank of India (RBI) had no records relating to the overseas company.
During questioning, the DMK MP disclosed that he had gifted 45 lakh shares to his wife Anusuya, 22.5 lakh shares to his daughter and 2.5 lakh shares to his son in September 2018.
Anusuya, who subsequently died, transferred her entire shareholding equally to her son and daughter in May 2019 for a consideration of one Singapore dollar each.
The family said that the RBI approval was unnecessary because no immediate monetary payment was involved in the transactions.
However, the ED rejected their explanation and concluded that the acquisition and transfer of overseas shares without the required regulatory compliance constituted a violation of Section 4 of FEMA.
The High Court will examine the legality of the seizure and the appellate tribunal’s findings.
–IANS
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