Srinivasan broke FEMA rules: CBI
The case was adjourned to Monday for further hearing.
By : DC Correspondent
Update: 2015-12-04 02:09 GMT
Hyderabad: The CBI on Thursday informed the Hyderabad High Court that N. Srinivasan, managing director of India Cements, has violated the provisions of the Foreign Exchange Management Act in selling the shares he acquired in Bharati Cements, to a French company.
P. Kesava Rao, counsel for the CBI, made this submission before Justice B Siva Shankar Rao while hearing a plea by Srinivasan seeking to quash criminal proceedings initiated against him by the CBI naming him as one of the accused in the Y.S. Jagan Mohan Reddy illegal investments case.
The CBI alleged in its chargesheet that Srinivasan entered into a criminal conspiracy with the other accused to avail undue benefits from the state like land and water allotments to his cement plants.
CBI counsel said that in lieu of the favours, Srinivasan invested Rs 140 crore in Bharati Cements, Carmel Asia and Jagathi Publications.
Kesava Rao said when the ED started its probe into the issue; he sold these shares in Bharati Cements to a French company.
He contended that selling shares to foreign entities without obtaining permission from the statutory authorities designated by the Centre is a violation under FEMA. The case was adjourned to Monday for further hearing.
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