I-Tax Dept conducts searches in Mumbai, seizes deposits over Rs 55 cr

New Delhi, Aug 5 (Agency) The Income Tax Department has carried out a search and seizure operation on an ex-fund manager and chief trader of equities of a prominent mutual fund house along with related share brokers, middlemen and entry operators, an official statement said on Friday. The department claimed to have seized unaccounted deposits exceeding Rs 55 crore. The search operation conducted on July 28, 2022, covered more than 25 premises, spread across Mumbai, Ahmedabad, Vadodara, Bhuj and Kolkata. ”As a result of the search operation, various incriminating evidences in the form of documents and digital data have been found and seized. These evidences gathered during the search including sworn statements recorded from various persons have revealed the modus operandi,” the statement said. ”It has been detected that the said fund manager and chief trader were sharing specific trade related information with brokers/middlemen and persons located in certain foreign jurisdictions. These persons in turn, used such information for illicit gains in the share market by trading in such scrips either in their own account or account of their clients,” the statement said.

”The persons including family members of the fund manager have admitted in their statements that the unaccounted cash generated from the above operations was routed mainly through Kolkata based shell entities into their bank accounts. From these bank accounts, funds have been further diverted into the bank accounts of companies/entities incorporated in India and other low tax jurisdictions. The gleaning of seized evidences has exposed the nexus between the ex-fund manager, middlemen, share brokers, and entry operators,” it said. ”Evidences of large-scale unaccounted investment in cash loans, fixed deposits, immovable properties and their renovation, etc. have also been found and seized. More than 20 lockers have been put under restraint,” the statement added.