ED seizes arms dealer’s assets

The Enforcement Directorate (ED) on Wednesday seized assets worth Rs 26.61 crore of absconding controversial arms dealer Sanjay Bhandari and others for holding undisclosed finances abroad in violation of Foreign Exchange Management Act (FEMA).

The agency seized the properties after investigation found that Bhandari had acquired movable and immovable assets worth more than Rs 150 crores outside India in contravention of section 4 of FEMA. The assets included undisclosed deposits in foreign bank accounts in UAE in various foreign currency denominations alongwith beneficial ownerships of companies incorporated in UAE including Offset India Solution FZC, Santech International FZC, Serra Dues Technologies, Petro Global Technologies FZC. There were also a flat in Palms, Dubai, and two flats in London at Grosvenor Hill Court and Bryanston Square.

Previously, the Income-Tax authorities had issued a notice to Bhandari under the Black Money Actfor not disclosing his foreign assets. He has since fled the country and is presently hiding in UK.

The investigation so far has also revealed routing of funds in Bhandari’s various companies through accommodation entries provided by shell companies.

What was seized

The assets included undisclosed deposits in foreign bank accounts in UAE in various foreign currency denominations alongwith beneficial ownerships of companies incorporated in UAE