Bank and Life Insurance Corporation of India (LIC) officers arrested in the loan scam could be in more trouble with the income tax (I-T) department deciding to probe the alleged bribes they received.
The assessment wing of the department will check the income details of the five officers of the nationalised banks and LIC arrested by the Economic Offences Wing of the Central Bureau of Investigation (CBI) on Tuesday.
The CBI alleged that these officers received hefty amounts as bribes from companies for clearing loans. Money Matters, a firm providing financial services to corporates, was allegedly the link between the companies and the banks.
A senior I-T officer, requesting anonymity because he is not authorised to speak to the media, said the department will check if the returns these officers filed in the last few years tally with their actual earnings.
“They will have shown income from their profession, but the cash collected for granting favours while sanctioning loans will not be mentioned in their I-T returns,” the officer said.
He said the department will scrutinise the properties and bank accounts of these officers and their family members for transactions undertaken in the last few years.
The department will also check the credit card usage of these officials and their families to get an idea of their spending patterns, the officer said.
“We will coordinate with the CBI to go through the documents they have collected pertaining to these five officers,” the officer said.
SSN Moorthy, chairman of the Central Board of Direct Taxes, which governs the I-T department, said: “Let the CBI complete its investigation and then we will take over the case…we will have to take a call.”