Hotel Le Meridian at Nagpur

The Enforcement Directorate (ED) seized assets of renowned real estate businessman and Pune-based builder Avinash Bhosale and his family members in connection with a case registered against him under Foreign Exchange Management Act (FEMA) – probe linked to alleged violation of the Forex Law.

The seized assets have been valued at ₹ 40.34 crore that include equity and preference shares in three luxury hotels in Classic City Investment Private Limited comprises three five-star hotels namely – Hotel Westin at Pune, Hotel Le Meridien at Nagpur and Hotel W Retreat & Spa at Goa.

The ED, as per its statement, said they had seized assets equivalent to the value of foreign securities held by Bhosale and his family members.

Apart from this, the ED also seized equity shares held in Avinash Bhosale Infrastructure Private Limited (ABIL) and ₹ 1.15 crore held in bank accounts in the name of Bhosale and his family members.

The ED initiated its probe in September 2017 against Bhosale and his family members after receiving information that the latter had acquired an immovable property in Dubai in contravention of FEMA.

The investigation revealed that Bhosale and his family members had acquired foreign securities of a Dubai firm Rochdale Associates Limited that held immovable property worth AED 20,000,000 – equivalent to ₹ 40,34,00,000 (over ₹40.34 crore).

ED said, “Bhosale and his family members acquired foreign securities of a company Rochdale Associates Limited, Dubai, which held immovable property worth AED 20,000,000 (about Rs 40.34 crore).”

It further stated, “To acquire the property, Bhosale and his family members remitted the funds through Liberalised Remittance Scheme in their bank accounts held outside India.”

ED stated, “It was declared that company is engaged in real estate business activity, however, investigation revealed that company does not have any business activity and is generating no income whatsoever.”

“Funds were remitted in different categories i.e. to purchase equity shares in the Company Rochdale Associates Limited, Dubai, family maintenances, savings received from NRI for family maintenance etc. However, remitted funds were utilised to purchase the said immovable property and shares of the company were allotted against the remitted funds,” the ED statement said.