In accordance with section 37A of the Foreign Exchange Management Act (FEMA), 1999, M/s CAT Technologies Limited, its promoters, and directors have had immovable property valued at Rs. 8.03 crore confiscated by the Directorate of Enforcement (ED). Twelve moveable properties owned by M/s CAT Technologies Limited, Dhiraj Kumar Jaiswal, Laxmi Pershad Jaiswal, Dinesh Kumar Jaiswal, and Nisha Jaiswal are among the confiscated assets.
In connection with the fraudulent issuing of Global Depository Receipts (GDRs) and non-utilisation of the same for legitimate purposes, the ED launched an inquiry under the provisions of FEMA, 1999 against M/s CAT Technologies Limited, its founders, directors, and others.
The results of the ED investigation showed that Dhiraj Kumar Jaiswal, the managing director of M/s CAT Technologies Limited, issued GDRs on two separate occasions in 2007 and 2009 in collusion with Arun Panchariya and others and did not purposefully repatriate the GDR proceeds worth USD 16.47 million to India as per the statutory requirements. The money obtained overseas was moved to its subsidiary, CAT Technology FZE, UAE, a shell corporation in the UAE, for a sizeable portion (USD 13.8 million).
Arun Panchariya, an individual of Indian descent who lives overseas, was the mastermind behind the entire scheme. The promoter of M/s Pan Asia Advisors Limited in London, Arun Panchariya, and his friends made it possible to issue GDRs and open the company’s accounts at Euram Bank in Vienna and Mashreq Bank in the United Arab Emirates. The proprietors and directors of different Indian firms are thought to have conspired with Arun Panchariya to perpetrate a number of GDR scams. The probe is being expanded upon.
