An Indian tribunal imposed a penalty of 5 million INR on singer Adnan Sami for buying eight flats in Mumbai in 2003 without prior permission from the Indian Reserve Bank (RBI) when he was a national of Pakistan.
The penalty amount has to be paid within three months of the order, issued on September 12. Sami had earlier deposited ₹10 lakh.
The singer had bought the Mumbai flats for a total of INR 2.53 crore without prior permission from RBI, according to The Hindu. Special permission was required as Sami was a national of Pakistan at the time of purchase, according to Indian rules.
He was not aware that Pakistani nationals could not purchase immovable property in India, as submitted by him.
“The impugned order is set aside as far as [the] exercise of discretion under Section 13(2) of the Act. The finding arrived under Section 13(1) shall remain intact. Sami shall deposit the remaining ₹40 lakh with the respondent [ED] within three months from today. As no case under Section 13(2) (about [the] confiscation of eight flats and five parking space)…the said findings and part of the order is quashed,” the tribunal said in its ruling.
“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,” ruled the tribunal after hearing both sides.