The Directorate of Enforcement (ED) in Jalandhar has seized immovable properties worth Rs 22.02 crore from Rana Sugars Ltd for violating the Foreign Exchange Management Act (FEMA), specifically Section 4, which governs the holding of foreign exchange outside India.
The company, which is headed by Rana Inder Partap Singh, an Independent MLA from Sultanpur Lodhi and the son of Congress MLA Rana Gurjeet Singh from Kapurthala, is under investigation for irregularities related to Global Depository Receipts (GDRs).
The ED’s action follows a probe into Rana Sugars Ltd and its management, including its promoters and directors, for issuing GDRs and failing to utilise the entire proceeds as intended.
The investigation revealed that the company had not repatriated all of its GDR receipts to India, holding a significant portion, amounting to USD 2.56 million (approximately Rs 22.02 crore), outside the country. This failure to bring the funds back to India is a direct violation of FEMA.
The ED has been investigating this case since December 2017, with Rana Inder Partap Singh being summoned for questioning in January 2018. During his questioning, he was grilled by ED officials for over six hours regarding the issue.
The case came to light after the Securities and Exchange Board of India (SEBI) alerted the ED about the improper raising of funds without informing the regulator, leading to a violation of FEMA regulations.
SEBI subsequently imposed a penalty of Rs 63 crore on Rana Sugars Ltd for allegedly diverting funds to associated entities.
Additionally, the Income Tax Department had conducted raids on 35 premises connected to the Rana family two months ago, carrying out searches over five consecutive days. The ongoing investigations into these financial discrepancies continue to unfold as authorities take action against those involved.
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