New Delhi: The New Delhi office of Pakistan International Airlines (PIA), at the centre of an investigation by the Enforcement Directorate (ED) for alleged foreign exchange violations, could face the prospect of closure.
The government is not convinced with the airline’s argument that under Section 5 of the Foreign Exchange Management Act (FEMA), it is not covered by the regulation which bars “citizens” of certain countries including Pakistan from purchasing immovable properties in India.
“The matter has to be probed under Section 7 read with Section 8 of the FEMA and not under Section 5 as the company is claiming,” a finance ministry source told The Indian Express. The matter was referred to the ED by the finance ministry when the Reserve Bank of India (RBI) almost after a decade, brought the matter of purchase of property by the airline to the notice of the ministry.
19/02/15 Shruti Srivastava/Indian Express
To Read the News in full at Source, Click the Headline
The government is not convinced with the airline’s argument that under Section 5 of the Foreign Exchange Management Act (FEMA), it is not covered by the regulation which bars “citizens” of certain countries including Pakistan from purchasing immovable properties in India.
“The matter has to be probed under Section 7 read with Section 8 of the FEMA and not under Section 5 as the company is claiming,” a finance ministry source told The Indian Express. The matter was referred to the ED by the finance ministry when the Reserve Bank of India (RBI) almost after a decade, brought the matter of purchase of property by the airline to the notice of the ministry.
19/02/15 Shruti Srivastava/Indian Express
