Chennai: In a startling disclosure, the Enforcement Directorate has said it had found that a leading businessman from Tamil Nadu had obtained Cyprus citizenship to escape being prosecuted under Indian laws.
The agency has attached assets valued at over Rs 2.5 crore belonging to MGM Maran’s Chennai-based Southern Agrifurane Industries Private Limited and under the Prevention of Money Laundering Act.
Maran is also a former Chairman of the Tamilnad Mercantile Bank (TMB). The ED had taken up investigation against him after an initial probe launched by the Central Crime Branch, Chennai Police in 2007.
The charge against him was that along with other directors and officials of the TMB, he had facilitated a deal for the sale of 23.6% shares of TMBL from Indian shareholders to unauthorised overseas persons. Recently the Madras High Court refused to grant him relief in the case.
“MGM Maran acquired undisclosed foreign investments of Rs 293.91 crore directly outside India during the same period. Such undisclosed investments were without the approval of RBI as well as from unexplained and highly dubious sources,” the ED said.
Surrendered citizenship
“In order to escape the reach of Indian laws, MGM Maran surrendered his Indian citizenship and obtained Cyprus citizenship. Not only that, it was also found that MGM Maran also started transferring his wealth from India to overseas in order to keep the same out of reach of the Indian law enforcement agencies in the garb of overseas direct investments from Southern Agrifurane Industries Private Limited,” the agency said.
The ED said it has attached assets in the form of the entire shareholding of Maran and Anand in all prominent MGM Group companies in India, land and buildings in Southern Agrifurane Industries Private Limited as well as Maran’s entire shareholding (3.31 per cent) in TMBL that was recently listed on the Bombay Stock Exchange.
