FCC Freezes Rs9 Million Home of Ex-Finance Minister Padayachy

The Financial Crimes Commission (FCC) has secured a court order to seize the luxurious residence of former Finance Minister Renganaden Padayachy, situated in the affluent area of Roches-Brunes, with an estimated value exceeding Rs 9 million. This action marks a significant escalation in the ongoing investigation into the financial scandal surrounding the Mauritius Investment Corporation (MIC).

Judicial Freeze on Luxurious Property

On Wednesday 7th May, the judge issued an Attachment Order against Padayachy’s newly constructed property in Morcellement Mount Pleasant – Roches-Brunes, effectively prohibiting any sale, transfer, or disposal of the asset.

This judicial freeze aims to safeguard a potential asset that could be confiscated should a conviction arise.

The FCC harbours suspicions that the funds used to finance this opulent residence may be linked to illicit activities associated with the MIC scandal.

Suspicions of Fraudulent Financing

Evidence presented to the court by investigators suggests there are substantial grounds to believe that the money invested in the construction of this home, nestled in a prestigious neighbourhood, is directly tied to fraudulent dealings involving public investments.

Padayachy, who has found himself embroiled in 2 separate investigations, was apprehended on 9 April in connection with the MIC’s acquisition of shares in East Coast Hotel Investment Ltd, a transaction valued at a staggering €48 million.

Re-arrest Amidst Deepening Probes

Mere days after Padayachy regained freedom, Padayachy was detained again at his previous residence in Gris-Gris, as part of the inquiry into Menlo Park Limited, conducted by the Anti-Money Laundering Unit of the Central CID.

These 2 cases have unveiled a web of dubious practices within the MIC, an entity ostensibly established to support struggling local businesses during the pandemic.

Throughout the investigations, numerous individuals have been interrogated, including the former Governor of the Bank of Mauritius, Harvesh Seegolam, who reportedly claimed that Padayachy exerted pressure to expedite certain financing matters, particularly those concerning Menlo Park and East Coast Hotel.

Asset Freeze Under New Legislation

The FCC has initiated this freeze procedure under Article 69 of the Financial Crimes Commission Act 2023, with the objective of freezing assets potentially linked to criminal activities, thereby preventing their dissipation or removal from the reach of justice.

For the time being, Renganaden Padayachy remains on conditional release in relation to these two cases.

Modification of Padayachy’s Bail Conditions

In the courtroom appearance on Wednesday, 7 May 2025, Renganaden Padayachy, facing 2 provisional charges of abuse of office and conspiracy to commit fraud, sought a modification of his bail conditions at the Port Louis tribunal.

The former Finance Minister’s request was predicated on a change of address, a plea that was granted by Magistrate Shaheen Inshirah Daureeawoo.

New Reporting Requirements Amidst Serious Allegations

Through his legal representative, Me Raouf Gulbul, Padayachy informed the court that he has now taken up residence in Roches-Brunes, Beau-Bassin.

Consequently, he is now required to report daily to the Camp Levieux police station between the hours of 6 AM and 8 PM, a shift from his previous obligation to report to the station in Souillac.

To recap, the 54-year-old Padayachy was arrested in April 2025 as part of two separate investigations into alleged fraud and misappropriation of funds.

The first case involves a staggering Rs 300 million fraud against the Mauritius Investment Corporation (MIC), while the second case pertains to an irregular payment of Rs 45 million made to the private company Menlo Park.

These alleged transgressions are said to have occurred between May and August 2024 at the MIC headquarters in Port Louis.

Conditions of Release Remain Unchanged

Aside from the adjustment in Padayachy’s reporting location, all other conditions of his bail remain unchanged.

He is required to maintain a fixed address, refrain from interfering with witnesses—including through social media—and remain reachable at all times via his mobile phone.

Padayachy is scheduled to return to court on 24 September 2025.

To secure his conditional release, he had previously provided two sureties, amounting to Rs 300,000 and Rs 250,000 by cheque, alongside signing two debt commitments of Rs 5 million each.

However, as the noose tightens around him, the FCC continues its meticulous examination of the files managed by the Mauritius Investment Corporation, leaving the former minister’s future hanging in the balance.

Source: Defi Media