Pune: ED Seizes Assets Worth Rs 40.34 Crore Of Builder Avinash Bhosale, His Family Members

Mubarak Ansari

Pune, 21st June 2021: The Enforcement Directorate (ED) has seized assets worth Rs 40.34 crore belonging to builder Avinash Bhosle and his family members, in the form of various assets under the Foreign Exchange Management Act 1999 (FEMA).

These properties have been seized as equivalent value of foreign securities/properties held by Avinash Bhosale and his family members in contravention of FEMA,1999 which provides for seizure of equivalent value, situated in India, of foreign security / immovable properties held outside India. The attached assets are in the form of Equity Shares and Preference Shares held in Classic City Investment Pvt Limited, Pune, which owns three luxurious hotels in five star category i.e. Hotel Westin, Pune; Hotel Le Meridien, Nagpur; Hotel W Retreat & Spa, Goa.

Further, Equity shares held in ABIL (Avinash Bhosale Infrastructure Private Limited) and Bank balance of around Rs 1.15 Crore lying in various bank accounts held in the name of Avinash Bhosle and his family members have been seized.

Enforcement Directorate has initiated the FEMA investigation in September 2017 against Avinash Bhosle and his family members on the basis of the information received that Avinash Bhosle and his family members have acquired the immovable property in Dubai in contravention of FEMA 1999.

ED investigation revealed that Avinash Bhosle and his family members acquired foreign securities of a company Rochdale Associates Limited, Dubai, which held immovable property worth AED 20,000,000 (Eqiv INR 40,34,00,000). To acquire the property, Avinash Bhosle and his family members remitted the funds through the Liberalised Remittance Scheme in their Bank accounts held outside India. Funds were remitted in different categories i.e. to purchase equity shares in the Company Rochdale Associates Limited, Dubai, family maintenance, 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. It was declared that the company is engaged in Real Estate Business activity, however, the investigation revealed that the company does not have any business activity and is generating no income whatsoever, ED said.

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