ED Seizes Properties Worth ₹22 Crore from Rana Sugars Ltd for FEMA Violation
The Directorate of Enforcement (ED), Jalandhar, has seized immovable assets worth ₹22.02 crore belonging to Rana Sugars Ltd for allegedly holding foreign exchange outside India, in violation of Section 4 of the Foreign Exchange Management Act (FEMA).
Rana Inder Partap Singh, the Managing Director of Rana Sugars Ltd and Independent MLA from Sultanpur Lodhi, is at the centre of the case. He is also the son of Congress MLA from Kapurthala, Rana Gurjeet Singh. The ED seized the properties under Section 37A of FEMA, following a long-standing investigation into the company’s financial dealings related to the issuance of Global Depository Receipts (GDRs).
According to the ED, Rana Sugars Ltd failed to repatriate the full amount of GDR proceeds to India, retaining approximately USD 2.56 million (₹22.02 crore) abroad. The funds, meant for legitimate business purposes, were allegedly not used as intended.
The probe, which began in December 2017, gained momentum after the Securities and Exchange Board of India (SEBI) alerted the ED about the unreported fund-raising activity. SEBI flagged that the company had raised money without informing the regulatory body—a direct breach of FEMA regulations. Subsequently, SEBI imposed a hefty penalty of ₹63 crore on Rana Sugars Ltd for alleged fund diversion to shell and individual entities.
Rana Inder Partap Singh was summoned by the ED in January 2018 and questioned for over six hours regarding the matter. Adding to the legal woes, the Income Tax Department conducted raids across 35 premises linked to the Rana family just two months ago. These raids were carried out over a span of five days, further intensifying scrutiny over the company's financial conduct.
The ED’s action marks a significant development in the ongoing investigation into alleged financial irregularities by Rana Sugars Ltd and its promoters.
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