Jalandhar: The ED has seized immovable properties valued at Rs. 22.02 crore belonging to Rana Sugars Ltd. under Section 37A of the Foreign Exchange Management Act (FEMA), 1999. The Company, associated with senior congress leader Rana Gurjeet Singh, is accused of holding foreign exchnage outside India in violation of section 4 of FEMA, 1999.
Investigation revealed that Rana Sugars Ltd. failed to repatriate $2.56 million from global; depository receipts proceeds, retaining these funds abroad contrary to FEMA regulations. Further investigations are ongoing.
This action follows previous scrutiny of the company’s financial activities. In 2018, the ED investigated Rana Sugars Ltd. for allegedly raising $18 million through GDRs without proper authorization from the Reserve Bank of India (RBI). The funds were reportedly held in portguese bank before being transferred to India, raising concerns about compliance with FEMA guidelines.
Rana Gurjeet Singh’s son, Rana Inder Partap Singh, the managing director of Rana Sugars Ltd, was summoned by the ED in connection with these allegations. He maintained that the company adhered to all regulatory requirements, asserting that the funds were raised through the “automated route,” which did not necessitate prior RBI approval.
More details are awaited as the investigation is underway.