MUMBAI – The Indian Appallate Tribunal for the Foreign Exchange Management Act (FEMA) recently imposed a fine of INR5 million on Adnan Sami, for purchasing property in India when he was a Pakistani national.
According to The Hindu newspaper, the singer had bought the flats in Mumbai for a total of INR 2.53 crore without seeking permission from the Reserve Bank of India (RBI). Special permission was needed as he was a Pakistani national at the time of procurement.
The penalty amount is due within three months of the order which was issued on September 12.
Sami claims he didn’t know that Pakistani nationals could not buy immovable property in India.
FEMA had initially cancelled the December 2010 order of the Enforcement Directorate Special Director (Mumbai) which ordered the confiscation of the properties.
The tribunal’s directive came in response to an appeal filed by the singer against the Special Director’s order to seize the properties and imposing 2 million INR in retribution.
“The impugned order is set aside as far as exercise of discretion under Section 13(2) of the Act. The finding arrived under Section 13(1) shall remain intact. Mr Sami shall deposit the remaining ₹40 lakh with the respondent [ED] within three months from today. As no case under Section 13(2) (about confiscation of eight flats and five parking space)…the said findings and part of the order is quashed,” the tribunal said in its ruling.
The tribunal gave the order after hearing Sami’s lawyer along with the Enforcement Directorate Special Director’s representatives.
“The flats were purchased by Indian Rupees, out of monies earned in India on which Income Tax has been paid, as well as monies loaned from India banks. The loans have been duly repaid,” directed the tribunal after hearing both sides.
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