New Delhi, Aug 5 : The Income Tax Department on Friday stated that they conducted an investigation and search in the past on an ex-fund chief trader and manager of the equities of a well-known mutual fund house together with intermediaries, sharebrokers as well as entry operators.The search, which was conducted on the 28th of July, covered more than 25 locations located all over Mumbai, Ahmedabad, Vadodara, Bhuj, and Kolkata and also evidence in the form of documents and digital files were seized according to an IT Department official said.
“It was discovered that the chief trader and fund manager were sharing specific trade-related data with brokers and individuals in certain jurisdictions outside of the United States,” the official said.
These individuals in turn, made use of this information to make illicit gains in the market for shares by trading in these scrips in their own accounts or in the accounts of their customers.
The fund manager’s family members, as well as the members of the fund manager have acknowledged in their accounts that the unaccounted cash derived from these operations was primarily transferred through Kolkata-based shell companies into their accounts at banks.
From these accounts, money has been transferred to the bank accounts of companies that have been incorporated in India as well as other tax-free jurisdictions.
The collection of confiscated evidence has revealed the connections between the former fund manager middlemen, share brokers as well as entry operators.
Evidence of massive unaccounted investments in cash loans fixed deposits, immovable property and their renovations, etc.were also discovered and confiscated.Over 20 lockers were placed under restriction.
As of now, unaccounted deposits in excess of 55 crore rupees have been confiscated.
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