Millennium Post

ED slaps Rs 8,600-cr penalty notice to Emaar MGF

The Enforcement Directorate on Tuesday slapped a Rs 8,600 crore show-cause notice on construction major Emaar MGF Land Ltd and its sister firms for alleged forex rules violation, the biggest such penal action in country's real estate sector.

The agency, which began an investigation in 2010 with regard to the group bringing in Foreign Direct Investment (FDI), alleged that the firm has violated the rules stipulated by the RBI in this regard and hence it stands guilty of 'contravention of foreign exchange rules' stipulated under the Foreign Exchange Management Act (FEMA).
The agency claimed to have found in its probe that the group had disclosed to RBI that it is bringing FDI for developing construction related projects in India but it used the funds for purchasing agricultutral land, which is a violation of rules framed by the banking and FDI regulator of the country.


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