The Directorate of Enforcement (ED) on Friday said it has taken possession of 100% shares of MGM Maran and MGM Anand in four MGM group firms and 3.31% stake in Tamilnad Mercantile Bank (TMB) under the provisions of the Prevention of Money Laundering Act (PMLA).
ED has invoked the provisions of Section 8(4) of PMLA and taken possession of the assets on Thursday. The four MGM group firms are Southern Agrifurane Industries, Anand Transport, MGM Entertainment, MGM Diamond Beach Resorts. The 3.31% share represents 52,39,959 equity shares in the TMB.
Maran was Chairman of TMB during 2007. As per ED, during his tenure along with other directors, officials of the TMB were accused of facilitating a deal of 23.60% TMB share sale from Indian shareholders to unauthorised overseas persons. It also accused Maran of acquiring undisclosed foreign assets of Rs 293.91 crore directly during the same period. Such undisclosed investments were without the approval of RBI, as well as from unexplained and highly dubious sources, ED said in a statement.