Adnan Sami Gets Fined a Hefty Amount for Buying 8 Flats in Mumbai While Being a Pakistani National
Singer Adnan Sami has to pay the penalty within three months of the order, issued on September 12. He had earlier deposited INR10 lakh
Singer Adnan Sami has landed in hot waters following a hefty penalty of INR50 lakhs. The Appellate Tribunal for the Foreign Exchange Management Act (FEMA) has imposed a fine on the artist for allegedly owning eight flats in Mumbai, which he bought back in 2003 without taking permission from the Reserve Bank of India. This was when he was a Pakistani national. The fine has to be paid within three months of the order, issued on September 12. Sami had earlier deposited INR10 lakh. The Tribunal's directive came on an appeal by the musician against the Special Director's order for confiscation of the flats and five parking lots and imposition of INR20 lakh in penalty.
“The impugned order is set aside as far as exercise of discretion under Section 13(2) of the Act. The finding arrived under Section 13(1) shall remain intact. Mr. Sami shall deposit the remaining ₹40 lakh with the respondent [ED] within three months from today. As no case under Section 13(2) (about confiscation of eight flats and five parking space)… the said findings and part of the order is quashed,” said the Tribunal in its judgment.
Sami had reportedly bought the properties in the Oberoi Sky Garden Co-operative Housing Society, at Lokhandwala in Mumbai, on December 29, 2003. The singer paid a total of INR2.53 crore for the flats. He later transferred five flats to his then wife, Sabah Galadari, along with some parking spaces, but afterwards his marriage was declared null and void by the Family Court. He was not aware that Pakistani nationals could not purchase immovable property in India, as submitted by him. Among those who appeared for the appellant was senior advocate Mahesh Jethmalani, while the ED Special Director was represented by legal consultant Prashant Pandey. After hearing both sides, the Tribunal noted that "the flats were purchased by Indian Rupees, out of monies earned in India on which Income Tax has been paid, as well as monies loaned from India banks. The loans have been duly repaid".