Raids on industrialist’s properties
The Income Tax (I-T) authorities on Thursday conducted searches on the premises of Anand Jain (52), chairman of blue chip firm Jai Corp Ltd.india Updated: Mar 06, 2009 01:10 IST
The Income Tax (I-T) authorities on Thursday conducted searches on the premises of Anand Jain (52), chairman of blue chip firm Jai Corp Ltd.
A team of over 100 I-T officials and staff began searches on more than five premises of Jain and his company since early morning. The searches continued till late on Thursday. Offices of Jai Corp, a listed company, in Nariman Point, Jain’s residence at Peddar Road and his another office in Navi Mumbai were searched. Some other premises of his outside Mumbai were also searched.
I-T officials said the searches were to find out about the huge money flow into the investment in Special Economic Zone (SEZ) by Jain. His company has invested in two multi product SEZs near Mumbai – the Navi Mumbai SEZ (NMSEZ) and Mumbai SEZ
(MSEZ) in Raigad. The official website of the company confirms the investment.
Officials said in SEZs money is coming through various layers. “We are finding out from where Jain’s company got the money invested in the SEZ,” said a senior I-T official.
The department is also looking into the price movement of company’s share between 2001 and 2007. In 2001, the price of the company’s share was Rs 30. In 2007 it crossed Rs 15,000 per share. The current price is around Rs 74.
I-T officials have been tracking Jain since last September. Jain was surveyed that time following a survey on a Raipur-based real estate developer where they found some transaction details between the two.
“Some details from the company (Jai Corp) were pending and during investigation of those we got some more leads which prompted the search operation,” the official said.
Jain was known to be a close friend of Mukesh Ambani, chairman of Reliance Industries Ltd. Jain and Ambani were classmates in school.
Jai Corp is one of the investors in the two SEZs. Mukesh Ambani’s Reliance group is the majority investor in these. Moreover, Jai Corp also has interests in real estate. The company would be developing two residential townships along the Mumbai-Pune Expressway and one each in Talegaon near Pune and Nashik.
Jai Corp had a total income of Rs 465 crore in 2007-08 and earned a net profit of Rs 137 crore.