The Income-tax department has seized “unaccounted” deposits worth more than Rs 55 crore and unearthed “evidences” of large-scale hidden investments after it recently raided a former chief trader and a fund manager, some share brokers and others, the CBDT and officials said Friday.
The raids were launched on July 28 and more than 25 premises in Mumbai, Ahmedabad, Vadodara, Bhuj and Kolkata were covered including that of “middlemen and entry operators (hawala operators).” Documents seized during the searches “including sworn statements recorded from various persons have revealed the modus operandi that the said fund manager and chief trader were sharing specific trade related information with brokers/middlemen and persons located in certain foreign jurisdictions, ” the CBDT said in a statement.
“These persons in turn, used such information for illicit gains in the share market by trading in such scrips either in their own account or account of their clients,” it said.
The Central Board of Direct Taxes (CBDT) is the administrative body for the I-T department.
These persons, the CBDT said, including family members of the fund manager have “admitted” in their statements that the “unaccounted” cash generated from the above operations was routed mainly through Kolkata-based shell (bogus) entities into their bank accounts. “From these bank accounts, funds have been further diverted into the bank accounts of companies/entities incorporated in India and other low tax jurisdictions. The gleaning of seized evidence has exposed the nexus between the ex-fund manager, middlemen, share brokers, and entry operators,” it alleged.
The CBDT said documents and data related to “large-scale unaccounted investment in cash loans, fixed deposits, immovable properties and their renovation, etc., have been seized.” “So far, unaccounted deposits exceeding Rs 55 crore have been seized,” the statement said, adding more than 20 lockers have been sealed by the officers of the department during the raids.
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