New Delhi, Mar 3 (IANS): The Enforcement Directorate (ED) on Thursday said that it has seized assets worth Rs 4.79 crore including 2.4 crore cash and immovable properties worth Rs 2.75 crore belonging to two brothers, Sumit Agarwal and Sachin Agarwal, under the Foreign Exchange Management Act (FEMA).

During the investigation being conducted by the ED into the remittance of foreign exchange to Hong Kong based companies in the guise of Import Advance remittances by the dummy entities located in India, searches were conducted at the premises of the beneficiary owners of Hong Kong based entities in November 2021.

During the searches, Rs 2 crore cash was seized from the premises of Agarwals in Delhi.

Incriminating documents were seized from premises located in Mumbai, Delhi, Kerala, Rajasthan and Chennai.

"The investigation revealed that out of the Rs 20 crore remitted by one such entity under investigation, Rs 2.85 crore was received by the Hong Kong based entities wherein the promoters, shareholders and Directors were the accused," said the ED official.

The official said that the ED has learnt during the investigation that the duo has acquired the assets in the form of foreign exchange and foreign security in Hong Kong in contravention of provisions of Section 4 of FEMA.

"Out of Rs 4.79 crore seized under FEMA, 1999, Rs 2.85 crore is foreign exchange received from Indian proprietorship firm Spring Infotech and Rs 1.94 crore is the foreign security held by the brothers in the form of foreign securities in Hong Kong," said the official.

Accordingly, the ED seized the properties worth Rs 4.79 crore located in India equivalent to the assets held in Hong Kong by the brothers in exercise of the powers conferred under FEMA, 1999.