After Amitabh Bachchan and Asihwarya Rai Bachchan, it’s the the turn of yet another Bollywood name to surface in the Panama Papers leak.
This time it is Actor Ajay Devgan, who reportedly bought over the entire shareholding of a British Virgin Islands (BVI) company Marylebone Entertainment Limited in 2013.
Registered in the BVI on 29 October, 2013, Hassan N Sayani, a London-based individual was the original shareholder with him being issued 1,000 shares on 31 October, 2013.
Reacting to the disclosure Ajay Devgan told the paper,“This company was set up with RBI guidelines for overseas direct investment route. Proper disclosures have been made by my family in the tax returns as required by law.”
Ajay Devgan consented to act as a director in the company on 31 October, 2013. He, however, resigned as director on 15 December 2014. In a written resolution before resigning, Devgan approved the appointment of EFG Trust Company Limited and EFG Nominees Limited as directors of Marylebone Entertainment.
Devgan’s resignation as a director from Marylebone Entertainment and appointment of foreign entities as directors could also be prompted by the government’s plans to introduce new rules to determine the place of effective management (PoEM).
PoEM is a new concept that was introduced in Budget 2015 to determine the residency of a company. It has, however, been deferred until 2017 to give India Inc some time to prepare structures based on their place of residency.