ED issues show cause notice to Dubai-based NRI businessman CC Thampi for FEMA violation of Rs 1000 cr

By: | Updated: November 25, 2017 7:14 PM

The Enforcement Directorate (ED) has issued a show cause notice to NRI businessman, CC Thampi, for alleged violation of Foreign Exchange Management Act (FEMA), amounting to Rs 1000 crore.

Enforcement Directorate, ED, FEMA, Foreign Exchange Managemnet, NRI businessman, CC Thampi, FEMA, India, UAEThe Enforcement Directorate (ED) has issued a show cause notice to NRI businessman, CC Thampi, for alleged violation of Foreign Exchange Management Act (FEMA), amounting to Rs 1000 crore. (Image: IE)

The Enforcement Directorate (ED) has issued a show cause notice to NRI businessman, CC Thampi, for alleged violation of Foreign Exchange Management Act (FEMA), amounting to Rs 1000 crore. Earlier, ED had booked him under Prevention of Money Laundering Act (PMLA) in connection with alleged wrongful approval for an engineering college in Thrissur by All India Council for Technical Education in 2009. The Dubai-based NRI businessman, Thampi, is the chairman of Holiday Group, whose businesses extend across India and UAE. Earlier, in a revelation by ED, Thampi was accused of buying huge tracts of land, via Foreign Direct Investment. During this period, UPA government was in power. Over several investigations, it was suspected that these lands brought by Thampi, which included about 400 acres of land in Haryana, violated FEMA, The Indian Express had reported. There was also a look-out circular issued against him, after which, Thampi had approached Kerala High Court with a plea to revoke the circular. Further, ED had questioned Thampi in Chennai, after the court did not provide him with relief.

Further, the NRI businessman was also questioned for his close association with politicians and bureaucrats during Congress regime. Speaking to The Indian Express, ED said that after investigation and facts verified by records with Ministry of Corporate Affairs, it was found that the businessman operated more than two dozen companies. He was the director of these companies with sprawling business from real estate to holiday resorts. ED had been acting very diligently in its process of questioning and did not  want Thampi to leave the country like liquor baron Vijay Mallya and meat exporter Moin Qureshi. Speaking to IE, ED had officer said, they had issued a notice to Thampi to appear before the ED, but it was found that he had approached Kerala High Court with a plea and was trying to leave the country.

Foreign Exchange Management Act, known as FEMA, was passed in the Parliament in 1999, replacing Foreign Exchange Regulation Act (FERA). FEMA, reports offences related to foreign exchange civil offences and is applicable to whole India. Later, Prevention of Money Laundering Act,2002 (PMLA) came into effect in 2005.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition