NEW DELHI: The Enforcement Directorate has seized properties worth Rs 48.87 crore of Ahmedabad-based Sintex Industries on Friday in connection with its transactions in the Panama Papers leak case. The agency is investigating 47 other cases related to the Panama papers.
“The names of Amit Patel and Rahul Patel had figured in the Panama Papers case with respect to their stakes in Amarange Inc., British Virgin Island (BVI). During the investigation it was found that between 2007 and 2009, Sintex Industries Limited had remitted 73.05 million euros to Sintex Holding BV, Netherlands (WOS), having one of its director as Amit Patel, as overseas direct investment,” a senior ED official said.
Further probe revealed that Sintex Holding BV, Netherlands, had created a wholly owned subsidiary namely Amarange Inc. which was incorporated in BVI having Amit Patel and Rahul Patel as its directors.
The funds remitted as overseas direct investment by Sintex Industries Ltd., were utilised by Sintex Holding BV, Netherlands for acquiring a property at No. 33 Tanglin Road # 17-09, Singapore, situated on the 17th floor of the building, according to ED report.
The Singapore flat was purchased for an amount of 7.9 million Singapore dollars in the name of Amarange Inc. BVI. However, in 2009 itself, Sintex Holding BV, Netherlands attempted to sell Amarange Inc., BVI to Hanca Investment Ltd., BVI for an amount of $8.20 million.
In return, the Sintex Holding BV, Netherlands had received $3 million but due to default in payment of the balance amount of $5.20 million by Hanca Investment Ltd., BVI, Sintex Holding BV forfeited the amount of $3 million and the share sale was annulled and Sintex Holding BV, Netherlands remained the beneficial owner of Amarange Inc., BVI.
In 2017 again, Singapore property in question was sold for 62,50,000 Singapore dollars and consequently, Sintex Holding BV, Netherlands dissolved Amarange Inc, BVI on August 8, 2017, having engaged in no business or activity except for the purchase and sale of Singapore property.
“Both these transactions of $3 million and 62,50,000 Singapore dollars were shown as income for Sintex Holdings BV, Netherlands and never brought back to India. Therefore, Sintex Industries Limited, Ahmedabad by doing the above act, contravened the provisions of section 4 of Foreign Exchange Management Act, and that a total amount of $3 million and 62,50,000 Singapore dollars (equivalent to Rs 48.87 crore) is still being held outside India as a result of the said transfers,” the ED said in its attachment order.
Source : timesofindia