Investigation in Citibank fraud by I-T officers

From next week, there will be an inspection by the Income Tax department. They will investigate the investments and tax payments of some high-networth individuals. These people were supposedly duped in the Rs 400 crore fraud at Citibank.

Hero Corporate Services (Rs 13.75 crore), OKS Sapan Tech (Rs 2 crore) and Satyam Auto (Rs 25 crore) were some of the big names involved in this fraud case.

The Income-Tax department had called above 20 such investors whose tax return is filed in the national capital and Gurgaon.

Many I-T offices including the one in Chandigarh are involved in the probe to determine the flow of money and ensure if taxes have been avoided by these individuals.

It may be either done via non-reporting the money that they put in the "investment scheme" or by the so-called mastermind of the fraud, Shivraj Puri. He is a relationship manager with the bank's Gurgaon branch who contracted with them.

As a part of the investigation, the department will also explore the angle of unaccounted money of the HNI clients which was pumped into the stock market. It would check whether it was used in a legal way or not.




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