Double whammy:I-T issues notices to duped investors
It seems to be a case of double whammy for several corporate entities and high net worth individuals (HNIs) who suffered heavy losses in the recent R400-crore Citibank customer fraud.delhi Updated: Jan 22, 2011 00:51 IST
It seems to be a case of double whammy for several corporate entities and high net worth individuals (HNIs) who suffered heavy losses in the recent Rs 400-crore Citibank customer fraud.
The income-tax department of Haryana region has issued notices to nearly a dozen investors, of the total 40 complaints received so far, seeking an explanation on the source of funds routed through scam mastermind Shivraj Puri, a relationship manager with Citibank, to be invested in the stock market.
Sanjay Gupta, associate vice-president, Hero Corporate Services Limited, is a co-accused in the case as he allegedly lured HNIs and firms to invest through Puri.
The I-T department has given a seven-day deadline to investors to establish the definite source of money.
Failure to do so will attract heavy financial penalty, sources said.
Officials have already clarified that their department had nothing to with the bank fraud as they were only tracking the money trail and wanted to ascertain the quantum of black money, if any, pumped into the stock market.
I-T sleuths suspect that corporate firms and HNIs had routed a handsome amount of black money through Gupta and Puri to convert it into legitimate white money.
According to highly-placed sources, the I-T department had swung into action from January 3 itself, soon after news of the scam broke out.
Officials had reportedly approached Citibank authorities and started collecting details of accounts of all the investors.
Assisted by a chartered accountancy firm, the Gurgaon police has zeroed in on investments worth about Rs 400 crore, majority of which came from non-listed and associate entities of Hero Group as well as its promoters.
Sources claimed the department was still collecting details of other investors from Citibank and notices would be issued to them as well.