ED seizes assets worth Rs 1.46 crore of union minister Kailash Gahlot's brother

By Team MyNation  |  First Published May 7, 2019, 2:54 PM IST

According to the investigating agency, ED had seized asset worth Rs 1.46 crore in the case of holding the foreign asset in UAE in contravention of Section 4 of FEMA,1999. Two properties one from Vasant Kunj, Delhi and one property in Haryana have been attached by ED.
 

New Delhi: Aam Aadmi Party (AAP) leader and Delhi minister Kailash Gahlot may soon visit Enforcement Directorate (ED) office as the agency might question him in a case related to Foreign Exchange Management Act (FEMA) registered against his brother Harish Gahlot.

According to the investigating agency, ED had seized asset worth Rs 1.46 crore in the case of holding the foreign asset in UAE in contravention of Section 4 of FEMA,1999. Two properties one from Vasant Kunj, Delhi and one property in Haryana have been attached by ED.

"Investigation was initiated under FEMA based on the information received from the Income Tax Department informing about transfer of money to the tune of Rs 1 crore from India to Dubai through hawala channel by Harish Gahlot through a Delhi based hawala dealer for making advance payments toward purchase of two flats in Dubai during the month September, 2018. 

The investigation under FEMA revealed that in the month of September Harish Gahlot had given Rs 1 crore cash to his younger son Nitesh Gahlot, who is an NRI and studying in Dubai, for sending this money to Dubai through unauthorized hawala channel, ED said.

"Nitesh Gahlot through his contact approached Inderpal Wadhawan, Delhi based hawala dealer for the same. Hawala dealer kept Rs 4 lakh with him as commission and illegally delivered Dirhams equivalent to Rs 96 lakh in Dubai which was collected by the friend of Nitesh Gahlot and deposited the said amount into his Dubai bank account. 

ED added that out of these funds Nitesh Gahlot had made the payment to the Dubai based developers for booking of two flats on his, his father Harish, his mother and his elder brother’s name.

ED Investigation has also revealed that in September last year, Harish Gahlot had also sent Rs 50 lakh (equivalent to AED 243,664) from his Bank in India account to son Nitesh in Dubai under Liberalized Remittance Scheme for the purpose of Travel for Education Including Fees Hostel Expenses etc. However, the said amount was not used for the intended purpose but actually used for booking of said two flats in Dubai, ED claimed. 

"Following the investigation under provision of FEMA, 1999 against Harish Gahlot, a seizure order under section 37A of FEMA 1999 has been issued in respect of immovable assets identified in India (Residential flat in Vasant Kunj, and Land at Chauma Village, Haryana) for an equivalent value to the extent of Rs 1.46 crores," ED said in a press statement.

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