The Enforcement Directorate (ED) in Bhopal has confiscated an immovable property valued at Rs 3.67 crore in Jabalpur under the Foreign Exchange Management Act (FEMA), 1999. The property, owned by Priyank Mehta, was seized due to violations of FEMA provisions. This action followed inputs from the Income Tax Department and subsequent ED investigations.
Officials found that Mehta had sent USD 548,000 under the Liberalised Remittance Scheme (LRS) for the EB-5 Visa Programme in the US, but a significant portion of USD 502,954 was not used as intended. Instead of repatriating the unutilized amount to India, Mehta transferred it from the US to Portugal. Further inquiries revealed that the refunded sum, along with additional remittances from India, was used to purchase property in Portugal, with the remaining funds held in a foreign bank account in Portugal.
The ED stated that Mehta’s actions violated FEMA, 1999, regarding the acquisition, holding, and utilization of foreign exchange and assets abroad. Under FEMA provisions, the ED seized Mehta’s Jabalpur property, valued at around Rs 3.67 crore, equivalent to the foreign exchange amount held outside India in contravention of regulations. This enforcement action is part of ongoing efforts to prevent misuse of foreign exchange remittances and ensure compliance with regulatory frameworks.
The ED confirmed that investigations are ongoing to trace additional transactions and assets related to the alleged violations. This move highlights the ED’s vigilance in monitoring cross-border financial activities and its commitment to enforcing regulations on foreign exchange. The agency is intensifying scrutiny on overseas investments made under the LRS and the repercussions of misusing remitted funds. This seizure represents a significant enforcement measure by the ED in Madhya Pradesh, reinforcing its role in safeguarding India’s financial system.
