New Delhi: The Enforcement Directorate (ED) on Thursday January 27 said that it has seized assets worth Rs 3.19 crore of Karusala Venkat Subba Rao, Tejesh K. Kodali and Kadiyala Venkateswara Rao of Hyderabad based 3K Technologies Limited, under the Foreign Exchange Management Act (FEMA).
The ED officials said that the seized assets are in the form of 15 immovable properties in Telangana and Andhra Pradesh.
The ED initiated an investigation on the basis of information received from the office of the Development Commissioner, Visakhapatnam Special Economic Zone.
The ED was told that 3K Technologies Limited had reported abnormal exports.
The ED initiated a money laundering probe on the basis of this information.
The ED investigation revealed that 3K Technologies Limited transferred foreign exchange to the tune of US$ 1,15,32,000 (equivalent to Rs 52,47,02,935) to 3K Technologies Inc, USA in 2010 in the guise of Overseas Direct Investment (ODI).
The official said that 3K Technologies Inc. USA was incorporated on 23 February 2007 and Tejesh K. Kodali was made director of the USA company.
It was learnt that 3K Technologies Inc USA was dissolved on 28 January 2011 within 3 months after receipt of the final ODI tranche.
No shares were issued by the US company and no Annual Reports were filed with the RBI.
After the transfer of these funds, Karusala Venkat Subba Rao, Tejesh K. Kodali and Kadiyala Venkateswara Rao left India and started residing in the USA.
The ED sent them several summons but they never responded to the summons.
“The above funds are still being held outside India in contravention of section 4 of FEMA,” the official said.
During the investigation, it was also learnt that Tejash K. Kodali is presently working in the US and recently a news article reported the arrest of Tejesh K. Kodali by the FBI in New Jersey for orchestrating an immigration fraud to fraudulently maintain immigration status and obtain work authorization for foreign clients through a bogus ‘Pay to Stay’ New Jersey college.
The official said that they have found in the investigation that Tejesh Kodali was also convicted and awarded a 5-year jail term and a fine of $2,50,000 was imposed on him in the student visa fraud case.
The 15 immovable properties of Karusala Venkat Subba Rao, Tejesh Kodali and Kadiyala Venkateswara Rao worth Rs. 3,19,58,410 have been seized as per the provisions of FEMA.