Hyderabad Tech Park Seized By ED

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Hyderabad: The Enforcement Directorate (ED) on Wednesday seized the Tech Park here of the Mack Soft Tech Private Ltd (MSTPL) for alleged violation of foreign currency rules.

The ED said it seized Q-City Tech Park worth Rs 86.38 crore under the provisions of Section 37A of the Foreign Exchange Management Act, 1999 (FEMA), in lieu of foreign assets illegally held abroad in contravention of the law’s Section 4.

The Tech Park, located at Gachibowli, consists of 2,500 square yards of land with 2,45,000 square feet of building space.

The ED initiated investigation under the FEMA on the basis of information that MSTPL remitted huge funds outside India in contravention of the FEMA.

“During the course of investigation, it was revealed that M/s MSTPL illegally transferred foreign exchange to the tune of $12,500,000 (equivalent to Rs 62.08 crore) to Orient Guide Investments Limited, Hong Kong under the guise of purchase of a non-existent fake software license,” the agency said in a statement.

“Further, during the period from November, 2011 to December, 2016, M/s MSTPL transferred foreign exchange to the tune of $3,980,000 (equivalent to Rs 24.30 crore) to Senat Legal Consultancy FZ LLC, UAE and Cresco Legal Consultancy FZ LLC, UAE in the name of legal services. It was proved that this was a sham transaction,” it added.

According to the ED, the foreign outward remittances on the pretext of purchase of software license and legal services were made by MSTPL with a view to siphon off funds from India and park them abroad.

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