The ED launched its probe based on the Panama Paper and the Pandora Paper leaks
The Enforcement Directorate, or ED, has issued a seizure order against the estate of former Goa MLA and mining magnet Anil Salgaocar and seized the shares held by this estate in connection with the foreign assets held by Mr Salgaocar before his death in 2016.
The ED initiated investigations against Mr Salgaocar based on the Panama Paper and the Pandora Paper leaks that claimed that the industrialist had incorporated multiple British Virgin Islands (BVI) firms.
Mr Salgaocar's iron ore mines in Goa and Karnataka and the ores from them were sold or exported through the MLA's Indian companies to SPVs (Special Purpose Vehicles) in the British Virgin Islands and Singapore, the ED said.
These SPVs were not declared before Indian authorities and acted as trading companies to sell iron ore produced in India to China and shift the profit out of the country.
Anil Salgaocar's five British Virgin Islands companies made profits amounting to around $690,650,641 (approximately Rs 5,718 crore) through the industrialist's iron ore trades. This was also not declared before the Indian authorities.
Anil Salgaocar contravened the provisions of FEMA, 1999 for almost Rs 5,718 crore by acquiring foreign exchange and holding assets outside India, the ED said.
His shares in all 33 companies, which were transferred to his estate after his death, have been seized by the ED.
These 33 companies own 441 immovable properties in Goa, Mumbai, and Karnataka.