CBI, ED teams to visit five countries to track 2G money
After Mauritius, joint teams of CBI and Enforcement Directorate officials will now visit five other countries including UK, Cyprus and Singapore to track the trail of huge money transactions in connection with 2G spectrum allocation scam.delhi Updated: May 30, 2011 21:32 IST
After Mauritius, joint teams of CBI and Enforcement Directorate officials will now visit five other countries including UK, Cyprus and Singapore to track the trail of huge money transactions in connection with 2G spectrum allocation scam.
While the CBI officials will examine the shareholding pattern of nearly a dozen companies, the ED will look for various entities that routed money using the country's financial channels violating forex rules.
Sources said that the team will visit UK, British Virgin Islands and Isle of Man on June 13 and Singapore on June 22. The teams are expected to visit Cyprus on June 24.
The decision comes in the backdrop of a four-member team of CBI and ED officials returning from Mauritius on Sunday after collecting information and evidences relating to companies involved in the probe, they said.
The sources said the Indian team had met various officials of the Registrar of Companies (RoC), Attorney General's office and Mauritius offshore banking authority to know the details of the companies which had opened bank accounts and using this mode to send money to various telecom firms in India.
Mauritius-based front companies of foreign investors are often utilised as a route to avoid paying taxes in India.
Investors utilise loopholes in the bilateral agreement on avoidance of double taxation between the two countries to channel funds illegally.
In a related development, the Mauritius Government has agreed to provide information about the shareholding pattern of the companies which allegedly acted as front for routing money in the 2G spectrum scam.
The ED has registered various cases under Foreign Exchange Management Act (FEMA) and Prevention of Money Laundering Act (PMLA) against former jailed Telecom Minister A Raja, DMK MP Kanimozhi and others for their alleged involvement in the 2G scam.
The Directorate has also imposed various charges of FEMA violations of over Rs 4,300 crore against top telecom firms including Swan, Loop and S-Tel and some of its executives under PMLA.