Mumbai:
The Enforcement Directorate (ED) has slapped a show cause notice on Pakistani singer Adnan Sami charging him with misleading the authorities by falsely declaring that he was an Indian while seeking a Rs 1.5 crore loan from a bank to help him buy eight flats in the city.
The ED also charged him with purchasing properties without the permission of the Reserve Bank of India (RBI).
Acquisition or transfer of properties by citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan without the permission of RBI is prohibited under Foreign Exchange Management Act, ED said.
"Adnan has not made any false statements as alleged in the notice issued by ED. We are in the process of drafting a reply to ED," the singer's lawyer, Vibhav Krishna, said.
The ED contended Adnan had purchased eight flats in a posh area in suburban Andheri for Rs 2.53 crore and taken loan of Rs 1.5 crore from Axis Bank for the purchase.
"However, Adnan misled the ED investigations by giving a wrong statement on January 20 that he had neither applied to RBI for permission nor obtained its approval for purchasing properties in India," ED alleged in the notice a copy of which is with PTI.
Investigations had revealed Adnan had purchased the flats in spite of rejection of his application by RBI on October 14, 2002, D Shanmugam, Assistant Director, Directorate of Enforcement, said and recommended to the higher ups to take action against him for alleged FEMA violation.
ED alleged the singer had misled the Axis bank at the time of taking the loan of Rs 1.5 crore by declaring in the application form that he was an Indian. In the indemnity bond to the bank, he had declared himself as "adult Indian inhabitant (proposed)." On this basis, the loan was sanctioned.
ED alleged Adnan tried to mislead investigators by saying he had come to India on business visa. It was revealed later that he had come on a visitor's visa.
Investigations revealed that of the eight flats, he had transferred five to his wife Sabah Galadari, a UAE national. Since his marriage with Sabah was declared null and void by the family court, the properties are in dispute, the ED contended.
By acquiring properties in India and transferring them to his wife, Adnan had violated provisions of FEMA and thus his flats were liable to be confiscated, the ED said.
Adnan's lawyer Vibhav Krishna said that "we shall deal with the allegations after papers are received by us. Adnan holds a PAN card issued by India since 1998 and he has been regularly paying taxes. He has applied for Indian citizenship in 2005 on the ground that his mother hails from Jammu."
"Adnan had purchased flats on the basis of legal advice and through developer Vikas Oberoi who is his friend. He was unaware that RBI's permission was necessary to buy the flats and had purchased them from his tax-paid funds on the basis of bank loan. The blank loan form was signed by him and details were filled in by the bank staff," Krishna said.
The ED also charged him with purchasing properties without the permission of the Reserve Bank of India (RBI).
Acquisition or transfer of properties by citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan without the permission of RBI is prohibited under Foreign Exchange Management Act, ED said.
"Adnan has not made any false statements as alleged in the notice issued by ED. We are in the process of drafting a reply to ED," the singer's lawyer, Vibhav Krishna, said.
The ED contended Adnan had purchased eight flats in a posh area in suburban Andheri for Rs 2.53 crore and taken loan of Rs 1.5 crore from Axis Bank for the purchase.
"However, Adnan misled the ED investigations by giving a wrong statement on January 20 that he had neither applied to RBI for permission nor obtained its approval for purchasing properties in India," ED alleged in the notice a copy of which is with PTI.
Investigations had revealed Adnan had purchased the flats in spite of rejection of his application by RBI on October 14, 2002, D Shanmugam, Assistant Director, Directorate of Enforcement, said and recommended to the higher ups to take action against him for alleged FEMA violation.
ED alleged the singer had misled the Axis bank at the time of taking the loan of Rs 1.5 crore by declaring in the application form that he was an Indian. In the indemnity bond to the bank, he had declared himself as "adult Indian inhabitant (proposed)." On this basis, the loan was sanctioned.
ED alleged Adnan tried to mislead investigators by saying he had come to India on business visa. It was revealed later that he had come on a visitor's visa.
Investigations revealed that of the eight flats, he had transferred five to his wife Sabah Galadari, a UAE national. Since his marriage with Sabah was declared null and void by the family court, the properties are in dispute, the ED contended.
By acquiring properties in India and transferring them to his wife, Adnan had violated provisions of FEMA and thus his flats were liable to be confiscated, the ED said.
Adnan's lawyer Vibhav Krishna said that "we shall deal with the allegations after papers are received by us. Adnan holds a PAN card issued by India since 1998 and he has been regularly paying taxes. He has applied for Indian citizenship in 2005 on the ground that his mother hails from Jammu."
"Adnan had purchased flats on the basis of legal advice and through developer Vikas Oberoi who is his friend. He was unaware that RBI's permission was necessary to buy the flats and had purchased them from his tax-paid funds on the basis of bank loan. The blank loan form was signed by him and details were filled in by the bank staff," Krishna said.
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