Russian company requests halt to property seizure

PANJIM, OCT 5
The Russian company True Axis Resorts Pvt Ltd (TAPL), which plans a hotel business in North Goa has requested Goa government to halt the confiscation of its properties since the matter is pending in the court.
TAPL has written to the Chief Secretary’s office that the company has already contested against the order by Directorate of Enforcement (DE) at Appellate Tribunal for Foreign Exchange (ATFFE).
The Cabinet, last month decided to confiscate four plots of land owned by TAPL as per directives of the DE.
“The State through various authorities had ratified purchases of these properties by executing the deeds of sale as well by providing various permissions and certifications for the repair of building, their lawful occupancy and other tourism related activities,” said the Company’s legal representative Vikram Varma.
TAPL property is one amongst the total 496 properties under scanner of DE for violating Foreign Exchange Management Act (FEMA). The Company has plans to construct a hotel project on its properties at Mandrem in Pernem which is valued to Rs 1.26 crores.
Varma said that his client is provided equity under 100 per cent foreign direct investment policy of the Government of India. DE in the past had directed the company to pay penalty of Rs seven lakhs along with additional penalty of Rs two lakhs for violations of FEMA 1999 sections. The authority also ordered confiscation of the properties.
The Russian firm paid total penalties to the DE as per the impugned order.
“The bonafied intentions of the petitioner are visible as the penalties are deposited with the DE. My client aggrieved with the findings of the said impugned order and moved an appeal in the appropriate appellant authority -ATFFE at New Delhi. The matter is admitted and is sub-judice,” he said.