FEMA case; ED seizes around Rs 40 crore in assets from a Pune businessman

In a FEMA case the Enforcement Directorate (ED) has confiscated assets worth over Rs 40 crore, including equity and preference shares in three luxury hotels, from Pune-based builder Avinash Bhosale and his family members as part of an investigation into alleged currency law violations, the agency said.

“These properties have been seized as equivalent value of foreign securities or properties held by Bhosale and his family members in contravention of the Foreign Exchange Management Act (FEMA), 1999 which provides for seizure of equivalent value, situated in India, of foreign security or immovable properties held outside India,” agency statement.

The linked assets include equity shares and preference shares held in Classic City Investment Pvt Limited, Pune, which owns three luxury hotels in the five-star category Hotel Westin, Pune, Hotel Le Meridien in Nagpur, and Hotel W Retreat & Spa in Goa, according to the company.

The ED further claimed that equity interests in ABIL (Avinash Bhosle Infrastructure Private Limited) and a bank balance of about Rs 1.15 crore held in bank accounts in the names of Bhosale and his family members have been confiscated.

According to the agency, the action was taken against Bhosale as part of a FEMA investigation against him and his family members that began in September of 2017.

It was subsequently learned that Bhosale and his family members had purchased assets in Dubai in violation of the FEMA, according to the report.

The ED raided various Bhosale-related properties in Maharashtra in February, including Pune, Mumbai, and Kolhapur, and had previously questioned him and his son under FEMA rules.

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