The Enforcement Directorate (ED) on Thursday said that they have seized immovable properties worth Rs 8.03 Crore belonging to CAT Technologies Limited, its promoters, and directors under section 37A of the Foreign Exchange Management Act (FEMA).
The ED initiated an investigation into money laundering under the provisions of FEMA against CAT Technologies Limited, its promoters, directors, and others in connection with fraudulent issuance of Global Depository Receipts (GDRs) and non-utilization of the same for bona fide purposes.
The seized properties include twelve immovable properties owned by CAT Technologies Limited, Dhiraj Kumar Jaiswal, Laxmi Pershad Jaiswal, Dinesh Kumar Jaiswal, and Nisha Jaiswal.
The ED investigation revealed that Dhiraj Kumar Jaiswal, Managing Director of CAT Technologies Limited, in connivance with Arun Panchariya and others, issued GDRs in the name of his company on two occasions in 2007 and 2009 and deliberately did not repatriate the GDR proceeds worth $16.47 million to India as per the statutory requirements.
A large part ($13.8 million) of the amount raised abroad was diverted to its subsidiary, CAT Technology FZE, UAE, a shell company in the UAE.
“The entire scam was orchestrated by Arun Panchariya – a person of Indian origin residing abroad. Panchariya, the promoter of Pan Asia Advisors Limited London, and his associates facilitated the issuance of GDRs, opening of a bank account for the company in Euram Bank, Vienna, and a bank account for its subsidiary in Mashreq Bank, UAE. Arun Panchariya is suspected to be behind several GDR frauds committed in connivance with the promoters and directors of various Indian companies,” said an official.
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