ED Seizes Rs 40 Crore Worth Assets From Pune Builder Avinash Bhosale For FEMA Violation

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New Delhi: The Directorate of Enforcement (ED) seized assets worth Rs 40 crore belonging to Pune businessman Avinash Bhosale in India for violating the rules of FEMA (Foreign Exchange Management) law. Act).

According to a report in the India time, Bhosale invested in Dubai by flouting FEMA rules.

The attached assets include 50% of the shares of Bhosale and his son Amit in Classic City Investment Ltd, which owns three five-star hotels – Westin in Pune, Le Meridien in Nagpur and W Retreat & Spa in Goa.

The remaining shares of the company are held by a hotelier.

“The seizure will ensure that the Bhosale family will have no control over the hotel business. It will not affect the regular operation of the hotels, ”said an official at the publication.

The assets seized also include the shares of the Bhosale family in their construction company, Avinash Bhosale Infrastructure Pvt Ltd (ABIL), and a bank balance of Rs 1.15 crore. The property was seized under Section 37-A of FEMA. If a person invests overseas in violation of FEMA rules, Section 37-A allows government officials to seize assets of equivalent value in India.

The ED opened the FEMA violation investigation in September 2017 after receiving reports that the Bhosale family had acquired property in Dubai after breaking the rules. The Bhosale family had acquired foreign securities from Dubai-based Rochdale Associates Limited, which owns real estate valued at AED 20,000,000 (Rs 40.3 crore).

According to You report, the Bhosale family had abused the Indian government’s liberalized transfer program to send funds to their overseas bank accounts in different categories, but mainly as food for relatives living overseas. They then used the fund to buy shares in Rochdale Associates, the daily said.

They had said Rochdale Associates was engaged in the real estate business, but ED’s investigation found that the company had no business activity. The ED is also investigating a FEMA violation case against the family linked to the purchase of a hotel in London.

Previously, the ED had also filed a money laundering case against Avinash Bhosale for allegedly illegally purchasing land in Pune intended for the construction of a residential building for bureaucrats and for the construction of a commercial structure there- low.


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