The Income Tax department on Wednesday searched the premises of MGM Group of companies, a business house that focuses on sectors such as logistics, hospitality and theme parks among others. Over 40 places belonging to the directors and family members were being searched in Chennai, Tirunelveli and in Karnataka by the taxmen.
A senior investigating officer said offices and properties belonging to both the brothers— MGM Anand and MGM Maran— were being searched. When asked for the reason behind the raid on the group, the officer said there was a certain input that they had received. “The group has been under scanner by various agencies for the last few months,” he said, refusing to divulge further details.
The MGM group has been under scanner, under various agencies, for a long time now. In December 2021, the Enforcement Directorate (ED) had seized assets worth ₹293.91 crore of MGM Maran under the provisions of Foreign Exchange Management Act (FEMA), 1999. The seized assets were in the form of shareholdings in four Indian companies— Southern Agrifurane Industries Private Limited (SAIPL); Anand Transport Private Limited; MGM Entertainment Private Limited and MGM Diamond Beach Resorts Private Limited.
Early this year, ED seized assets worth ₹216.40 crore from SAIPL and its promoter/director MGM Maran and MGM Anand. According to details provided by the ED then, SAIPL siphoned off ₹216.40 crore abroad under the garb of Overseas Direct Investments (ODI) by way of false declarations to its authorised dealer (AD) bank as well as by way of structuring transactions in a manner so as to send outward remittances without any bonafides. The funds were diverted outside India with an intention to escape the clutches of Indian laws. This way, the company siphoned off around 85% of its net worth abroad. The seized assets were in the form of land and buildings owned by SAIPL in Tamil Nadu and Telangana; shares owned by MGM Maran in Tamilnad Mercantile Bank Ltd. (representing 3.31% shares of TMB); shares of Indian companies SAIPL, MGM Entertainment Pvt. Ltd and Anand Transport Pvt. Ltd., owned by MGM Anand.
ED officials in March this year said MGM Maran surrendered his Indian passport in December 2016 and had taken a Cyprus passport to become a Cyprus citizen.
Published - June 15, 2022 10:23 pm IST
