Income Tax Department conducts searches in Mumbai; Seized Unaccounted Deposits more than Rs 55 Crore

The Income Tax Department carried out a search and seizure operation on 28.07.2022 on an ex-fund manager and chief trader of equities of a prominent mutual fund house along with related sharebrokers, middlemen and entry operators.

More than 25 locations, including those in Mumbai, Ahmedabad, Vadodara, Bhuj, and Kolkata, were the subject of the search.

Various incriminating evidences, including documents and digital data, have been discovered and seized as a result of the search operation. The modus operandi has been disclosed by the evidence discovered during the search, including sworn statements obtained from numerous people. It was discovered that the aforementioned fund manager and chief trader were communicating with brokers, middlemen, and individuals residing in particular foreign jurisdictions about certain trade-related information. These people then traded in such stocks on their own accounts or on behalf of their clients in order to make illegal gains on the stock market.

These individuals, which include the fund manager’s family members, acknowledged in their statements that the unexplained funds from the aforementioned transactions were mostly transferred into their bank accounts through shell companies with addresses in Kolkata. From these bank accounts, money has been transferred further into the bank accounts of businesses and other entities registered in low-tax nations like India. The relationship between the former fund manager, middlemen, share brokers, and entry operators has been made clear by the evidence that was obtained.

Evidence of significant unreported investments in cash loans, fixed deposits, moveable property renovation, etc., have also been discovered and seized. Twenty or more lockers are now restrained. So far, unaccounted deposits exceeding Rs. 55 crore have been seized.

Further investigations are in progress.