Panama Papers: DLF, Apollo Tyres, IndiaBulls deny violating laws

New Delhi: Promoters of corporate houses, DLF, Apollo Tyres and IndiaBulls Monday denied violating laws after being named among 500 Indians in leaked 'Panama Papers' for alleged offshore holdings.

"This (report) is aimed at distorting public perception which is extremely dear and important to all corporates and promoter families, especially when they have followed all applicable rules and regulations of government of India, RBI, FEMA and IT Department to the last detail," DLF CEO Rajeev Talwar told PTI.

The report published by the 'Indian Express' had said that DLF Promoter Family owns firms BVI and the family's three offshore entities together held almost USD 10 million.

He further said: "We vehemently and strongly emphasise that all remittances were made after the government introduced the LRS Scheme in 2004. Each year the remittances were below the limit prescribed by RBI."

Stressing that all the remittances were made to the banks which were the authorised dealers, Talwar said: "therefore there is no question of wrongdoing. No companies were set up by the promoter groups in BVI. All these were existing companies to which shares were subscribed to as permitted by government of India."

Each year, this was reported to IT Department, it was also mentioned in DLF's annual report, he added.

The report also said Onkar Kanwar, Chairman of Apollo Group, and his family members floated an offshore entity in British Virgin Islands in 2010 and two trusts in 2014.

Reacting to it, an authorised spokesperson said, "India lawfully permits foreign investments in accordance with certain regulations. Any investment abroad, that the Kanwar family may have, is in due compliance with the Indian laws, where applicable, including making disclosures wherever required.

"Much of the family members mentioned are NRIs. They are covered by other nation's permissible laws for their foreign investments and are not covered by Indian laws and restrictions on residents in matters such as Income Tax and RBI.

Mumbai-based Indiabulls' Sameer Gehlaut, who was also named among those with links to entities in offshore tax havens, later said all his overseas investments were made after "paying full taxes in India, each and every overseas remittance is disclosed to RBI as and when it has been made".

"All disclosures related to these investments are also made with Income Tax authorities in yearly returns as well as with RBI in Annual Performance Reports. All my overseas investments are done strictly in accordance with RBI framework of Overseas Direct Investments," he said in a statement.

A spokesperson of Indiabulls further said that Gehlaut receives dividends of Rs 350-450 crore every year and he has been investing his monies in his Indian family trust, SG Family Trust (stands for Sameer Gehlaut Family Trust) for further investments in its wholly owned subsidiary in India, Callies Infrastructure Pvt Ltd (India).

"Further Callies Infrastructure Pvt Ltd has capitalised its wholly owned subsidiary in Bahamas, Clivedale Overseas Ltd (Bahamas) that is engaged in property development business in London through its subsidiaries under the brand Clivedale," the spokesperson said, while giving details of Indiabulls Real Estate Ltd's property development business in London and also of SG Family Trust.

He further said these businesses were "strictly as per the RBI policy framework for Overseas Direct Investments" and all disclosures pertaining to business of SG Family Trust and Indiabulls Real Estate have been made to RBI and Income Tax departments for every financial year since inception and also as and when each of the overseas remittances have been made.