FEMA violation case against singer Adnan Sami

The Enforcement Directorate has confiscated eight flats and five car parking spaces of singer Adnan Sami in a high rise building in Mumbai and slapped a Rs 20 lakh fine on him for acquiring assets without permission of Reserve Bank of India as he was a Pakistani national. The properties, located in Oberoi Sky Garden Housing Society in posh Lokhandwala complex in suburban Andheri, were allegedly acquired by Sami in 2003 in violation of Foreign Exchange Management (acquisition and transfer of immovable property in India) Regulations, 2000. Under these regulations, any person, who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanisthan, China, Iran, Nepal or Bhutan cannot purchase or transfer any kind of immovable property in India without taking permission of RBI. The properties were confiscated following an order passed by Foreign Exchange Management Act adjudication authority.


Sami had purchased these properties in 2003 for Rs 2.53 crore. In 2008, he gifted five flats and three parking slots to his wife Sabah Galadari, a UAE national. Later, his relations with Sabah turned soar and she filed a divorce case against him. Sabah claimed that the flats gifted by Sami now belonged to her, although he disputed her plea in the court which declared their marriage null and void.

ED said that Sami had not taken approval of RBI to buy these properties and after acquiring them when he applied for the permission, the RBI had rejected his plea. ED claimed that while taking loans to buy properties, he had misled banks by declaring that he was an Indian national.

Sami had taken a stand before the FEMA adjudication authority that RBI had powers to grant ex-post-facto permission to acquire the properties and such an application made by him is pending before the apex court. He urged that till RBI decides his application, the authorities should not pass any order but his plea was rejected. The singer pleaded that he had taken loans from Axis bank to buy these properties and there was no question of foreign exchange violation and hence FEMA rules were not violated. He also told the FEMA adjudication forum that he had applied for Indian citizenship and his application was pending before authorities. The singer pleaded that he had got a PAN card and was paying income tax in India since last ten years. His mother was from Jammu and he had roots in India.

ED confiscated the flats saying purchase of all the properties as well as transfer of five flats and three parking slots to Sabah were illegal and violated FEMA laws.

Adnan Sami has a right to appeal before the appellate forum of FEMA i.e. appellate Tribunal foreign Exchange (ATFE) New Delhi.

Bombay High Court orders attachment of Sanjay Dutt's properties

Recently, on 27.12.2010, the Bombay High Court ordered the attachment of two properties of Bollywood star Sanjay Dutt. The case appears to be like this : a film producer Mr. Shakeel Noorani in 2002 had paid Sanjay Dutt a signing amount of Rs.50 lakh for his film Jaan Ki Baazi. But Dutt failed to complete the shooting. As per the claimant Shakeel Noorani, it was only in 2008 that Dutt finally told Noorani that he will not be completing the film, causing financial losses to Noorani. This led Noorani to invoke arbitration and he filed a claim of Rs. 3.28 cr against Sanjay Dutt with the Indian Motion Pictures Producers Association (IMPPA). In January 2010, the IMPPA passed an arbitration award in favour of Noorani. He sent the award to Sanjay Dutt and asked him to pay the amount within 90 days but Dutt failed to pay. As per Section 36 of the Arbitration & Conciliation Act 1996, the Award can be executed like a decree after the time period for challenging the award (90 days + 30 days) expires. Thus, Noorani filed case No. Ex.A/972/2010 in Bombay High Court for execution of the award/decree. The execution department of the Bombay High Court issued a warrant of attachment under Civil Procedure Code against Dutt and on 27.12.2010 Tuesday the notices of attachment of his properties in Bandra and Santa Cruz were pasted on the premises by the bailiff of the Sheriff's court.

Producers of 'Dabaang' and 'Teesmaar khan' dragged to court

As per some news reports, a public interest litigation (PIL) has been filed by one Nutan Thakur (wife of an Indian Police Service (IPS) officer) before the Lucknow bench of Allahabad High Court on 23.12.2010 Thursday alleging obscenity in Bollywood films 'Dabangg' and 'Tees Maar Khan'.
The petition sought the deletion of popular songs 'Munni Badnaam Hui' from 'Dabangg' and 'Shiela ki Jawani' from 'Tees Maar Khan'. The PIL seeks action against 'Dabangg' producer Arbaz Khan and co-producers Malaika Arora Khan and Dhillin Mehta and also its director Abhinav Kashyap, besides 'Tees Maar Khan' producers Twinkle Khanna, Ronnie Screwvala and director Farah Khan for violating various provisions of the Indian Cinematography Act of 1952.
As per the allegations in the petition, said both the movies have 'several indecent, immoral and vulgar songs, dialogues and visual representations in total violation of sections 3(1), 4, 5(A), 5(C) and 5(E) of the Cinematography Act 1952'.
The petitioner prayed to the court to ask the Censor Board and ministry of information and broadcasting to issue directives to the filmmakers and TV channels, audio and video cassette companies etc. not to broadcast promos and songs of the films. The matter would come up for hearing on Jan 3, 2011.

FAITH makes all things possible,
HOPE makes all things work,
LOVE makes all things beautiful.
May you have all the three for this Christmas.
*MERRY CHRISTMAS*