Madras HC confirms Rs.28-cr penalty on Sasikala’s nephew Dinakaran
The matter related to receipt of over $10 million by Dinkaran in alleged contravention of the Foreign Exchange Regulation Act in 1994-95
The Madras High Court on Friday confirmed an order of the FERA Appellate Board, imposing a penalty of Rs.28 crore on former AIADMK MP and party general secretary VK Sasikala’s nephew TTV Dinakaran in a case initiated by the Enforcement Directorate in 1996, Financial Express reported.
The first bench comprising Chief Justice SK Kaul and Justice R Mahadevan passed the orderm while dismissing a petition filed by Dinakaran challenging FERA board’s May 5, 2000, order.
The matter related to receipt of over $10 million by Dinkaran in alleged contravention of the Foreign Exchange Regulation Act in 1994-95.
Originally, a total penalty of Rs.31 crore was imposed on Dinakaran by the Enforcement Directorate Special Director (FERA), New Delhi, on February 6, 1998, for contravention of provisions of Sec 8(1), 9(1) (a) and 14 of FERA.
Aggrieved by this, Dinakaran filed an appeal in the FERA Appellate Board, which, in its May 5, 2000, order, found him guilty on all counts in respect of all alleged transactions, but reduced the amount involved from $1,04,93,313 to $62,61,313 and imposed a total penalty of Rs.28 crore.
Challenging this, Dinakaran filed the present petition in the high court the same year.
In its order, the bench said a perusal of records showed that the appellant had been given a fair opportunity. As found by the appellate authority, the guilt of appellant was culled out only from the documentary evidence and the entire statements of the other witnesses were discarded.
“Thus the plea of bias put forth by the appellant does not hold any water. Appellate authority had independently examined the issues based on the evidence on record afresh. The order of the appellate authority is hereby confirmed,” it said, dismissing Dinakaran’s petition.
He is also the eldest brother of deceased Jayalalithaa's foster son.
He first came to notice in 1988 as one of Jayalalitha's permanent hangers - on after the AIADMK split in the wake of MGR's death. Just like his aunt Sasikala, he had a brief period of estrangement from Jayalalithaa, but the Mannargudi clan seems to have a special power over Jayalalithaa that the 'Iron Lady' would eventually accept them inspite of all their misgivings.
In 1992, he floated a company, Emerald Constructions, in Madras, which hit the headlines when a Congress(I) MLA charged it with illegally acquiring prime government land in the state capital.
The next time Dinakaran was heard about was when the ED served him a notice in July 1995. Investigations into the Jain hawala racket led the ED to a Madras-based kingpin, H. Ameer. Records seized from Ameer's office and residence reportedly revealed hawala transactions involving him and Dinakaran.
This nephew of Sasikala is believed to have stashed hundreds of crores of rupees abroad, with the Enforcement Directorate having evidence of just one-tenth of the amount.