Raids on ex-fund manager leads to recovery of Rs 55 crore deposits

India

oi-Vicky Nanjappa

New
Delhi,
Aug
06:
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,
news
agency
PTI
reported.

“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.

SSC
scam:
Rs
20
crore
cash
seized
after
raids
on
Trinamool
minister
Partha
Chatterjee’s
close
aide

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.