In accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has seized 100% of the shares of MGM Maran and MGM Anand in four MGM group companies in India: Southern Agrifurane Industries Private Limited, Anand Transport Private Limited, MGM Entertainment Private Limited, and MGM Diamond Beach Resorts Pvt. Additionally, 52,39,959 equity shares, or 3.31% of MGM Maran, are held by Tamilnad Mercantile Bank Limited (TMBL), which was recently listed on the BSE.
While serving as Chairman of Tamilnad Mercantile Bank Limited (TMBL) in 2007, MGM Maran helped arrange the sale of 23.60% of TMB shares from Indian owners to unapproved foreign buyers. This transaction was assisted by TMBL executives and other directors. Additionally, it was discovered that MGM Maran made undeclared overseas investments of Rs 293.91 Crore outside of India during that time. These concealed investments came from mysterious and very questionable sources and were made without the RBI’s consent.
According to the ED investigation, MGM Maran began moving his wealth outside of India shortly after it was the subject of an ED investigation. His sole goal was to keep it hidden from Indian law enforcement agencies under the guise of Overseas Direct Investments (ODI), and in order to do this, he obtained Cyprus citizenship in 2016.
Thus, by virtue of the Provisional Attachment Order dated 23.12.2022, the Enforcement Department attached the proceeds of crime under the PMLA as equivalent value. These included the full shareholdings of MGM Maran and MGM Anand in all well-known MGM Group companies in India, as well as the lands and buildings in “Southern Agrifurane Industries Pvt Ltd” and Maran’s 3.31 per cent shareholding in TMBL.
The Hon’ble Adjudicating Authority then affirmed the judgment in an order dated June 14, 2023. By notification dated 16.11.2023, ED has seized possession of the confirmed attached properties by invoking Section 8(4) of the PMLA. Further research is now being conducted.
