New Delhi

In connection with FEMA violations in the GDR (Global Depositary Receipts) scam case, the Enforcement Directorate (ED) announced on Wednesday that it had seized movable and immovable properties worth Rs 62.52 crore from Farmax India Limited (FIL), its Managing Director Morthala Srinivasa Reddy, and his brother M. Malla Reddy, Executive Director in Farmax India Ltd.

According to the statement, the agency has taken possession of 23 properties valued at Rs 62.52 crore in accordance with the Foreign Exchange Management Act (FEMA). 23 immovable properties owned by Farmax India Limited, its managing director Morthala Srinivasa Reddy, and his brother M. Malla Reddy are among the properties that have been seized.

The shares of MSR India Ltd., which were initially owned by Morthala Srinivasa Reddy before being subsequently transferred to his brother and other family members, as well as equity shares of Farmax India Limited in the name of the promoters are among the other properties that the ED said were seized.

The FEMA provisions are being investigated by the central agency against Farmax India Limited, its directors, promoters, and other parties in relation to the fraudulent issuance of Global Depository Receipts (GDRs) and non-use of the same for legitimate purposes.

According to an ED investigation, Morthala Srinivasa Reddy, MD of FIL, issued GDRs in the name of his company in two tranches in 2010 with Arun Panchariya and others’ help. He failed to voluntarily repatriate the GDR proceeds, which were worth US$ 71.45 million, to India in accordance with the law.