Millennium Post

Pak carrier acquires Delhi property without RBI nod

Pakistani carrier PIA purchased immovable property in the national capital without obtaining prior approval from the Reserve Bank, Parliament was informed on Tuesday. Replying to a question on foreign companies acquired flats/offices in India without prior approval, Minister of State for Finance, Jayant Sinha said one case has come to the notice of the Enforcement Directorate (ED).

“... a foreign company has acquired immovable property in the country without obtaining mandatory clearance from the RBI. “The case relates to acquisition of six flats and a car parking space in New Delhi by Pakistan International Airlines,” Sinha said in written reply in Rajya Sabha.

Replying to another question on the government’s action to vacate such premises, the Minister said ED issues Show Cause Notice (SCN) under Foreign Exchange Management Act in case any contraventions are noticed during investigations. “The SCN is adjudicated by the Competent Adjudicating Authority. In case contraventions are substantiated during adjudication, the Adjudicating Authority may, in addition to imposition of monetary penalty, also direct confiscation of the property involved in contravention,” he said.

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