ED seizes properties worth Rs 22.02 crore of Sultanpur Lodhi MLA’s Rana Sugars Ltd

The Directorate of Enforcement (ED), Jalandhar, has seized immovable properties worth Rs 22.02 crore of Rana Sugars Ltd for holding foreign exchange outside India, in contravention of Section 4 of the Foreign Exchange Management Act.

Rana Inder Partap Singh, Independent MLA of Sultanpur Lodhi and son of Congress Kapurthala MLA Rana Gurjeet Singh, is the MD of the company. The properties have been seized by the ED under Section 37A of the provisions of FEMA. The ED had been pursuing the case against Rana Sugars Ltd, its promoters, directors and others in connection with issuance of Global Depository Receipts (GDRs) and non-utilisation of the entire GDR proceeds for its intended bona-fide purpose.

The ED investigation revealed that out of the total GDR receipts, M/s Rana Sugars Ltd did not repatriate the entire GDR proceeds to India and held GDR proceeds to the tune of USD 2.56 million (Rs 22.02 crore) outside India.

The ED had been enquiring about this case since December 2017. Rana Inder Partap had been summoned by the ED in January 2018 in the case and had been grilled by the officials for over six hours.

The issue had come to light after the Securities and Exchange Board of India (SEBI) had informed the ED that the money was raised without informing Securities and Exchange Board of India (SEBI) and it was a clear violation of FEMA. The SEBI had imposed a penalty of Rs 63 crore on Rana Sugars Ltd on the alleged charges of diversion of funds to its conduit and individual entities.

The Income Tax department, too, had conducted raids at 35 premises linked to Ranas two months back. The raids had been conducted for five consecutive days.

Jalandhar