Legal4 Apr 2025, 11:58 pm
Rana Sugars Ltd. Receives Seizure Order from Enforcement Directorate for Rs. 22.02 Crore Under FEMA Section 37A
AI Summary
Rana Sugars Ltd. has received an order from the Enforcement Directorate (ED) for seizure of immovable property worth Rs. 22.02 Crore under Section 37A of the Foreign Exchange Management Act, 1999. The ED is investigating the company, its promoters, directors, and other individuals in connection with the issuance of Global Depository Receipts (GDR) in 2006 and the non-utilization of such GDR proceeds in entirety for its intended bona-fide purpose. The company has a strong case and is planning to file an appeal against the order. In the short term, there is no financial implication.
Key Highlights
- Rana Sugars Ltd. received an order from the Enforcement Directorate for seizure of immovable property worth Rs. 22.02 Crore under Section 37A of FEMA, 1999.
- ED is investigating the company, its promoters, directors, and other individuals in connection with the issuance of GDR in 2006 and non-utilization of such GDR proceeds in entirety.
- Company holds GDR proceeds to the tune of USD 2.56 Million outside India in contravention of section 4 of FEMA,1999.
- Rana Sugars Ltd. has a strong case and is planning to file an appeal against the order.
- In the short term, there is no financial implication.