The Enforcement Directorate (ED) has taken control of the complete shareholding of the late industrialist Anil Salgaocar. This action was taken as Anil Salgaocar did not disclose a profit of Rs 5,700 crore earned from companies in the British Virgin Islands (BVI) and Singapore to Indian authorities. The ED’s investigation uncovered that Salgaocar, who owned iron ore mines in Goa and Karnataka, sold or exported the ore produced by these mines through his Indian group companies to special purpose vehicles (SPVs) in BVI and Singapore. These SPVs, undisclosed to Indian authorities, were engaged in trading iron ore from India to China, resulting in profits being shifted outside India.
The ED further revealed that the five BVI companies linked to Anil Salgaocar accumulated a profit of approximately over Rs 5,700 crore through ore trading activities. This profit was not reported to Indian authorities. The investigation found that Salgaocar’s acquisition of foreign exchange and holding of assets outside India went against the provisions of Section 4 of FEMA, 1999. Consequently, the ED has seized the entire shareholding that was transferred to Anil Salgaocar’s estate across 33 companies.
These 33 companies collectively possess 441 immovable properties, mainly located in Goa, along with a few properties in Mumbai and Karnataka. The ED’s action is a result of the ongoing investigation into the Panama Papers, highlighting the authorities’ efforts to ensure compliance with financial regulations and prevent unauthorized wealth movement.
