SUNDAY, 06 JANUARY 2013 00:36 PNS | CHENNAI
The mystery surrounding the seizure of massive investment documents from a Tirupur trader has deepened with the sleuths of the I-T Department, who questioned TM Ramalingam, disclosing what they seized were Bills of Exchange and not US Treasury Bonds as they had claimed earlier.
However, the question remains how come the US Federal Treasury owes a small time agriculture trader $5 billion.
The I-T Department has so far remained tightlipped about the genuineness of the these investment papers even as Ramalingam’s lawyer told The Pioneer that his client can explain the source of the money.
“This could be the tip of an iceberg. The I-T Department should clarify what they seized during the December 31 raids. I am sure that the country’s Income Tax officials are intelligent enough to understand the difference between Treasury Bonds and Bills of Exchange,” said MR Venkitesh, chartered accountant and author of the acclaimed book Sense, Sensex and sentiments — Failure of India’s Financial Sentinels.He said the even if the documents seized were Bills of Exchange, many questions remained unanswered.
“The Bill of Exchange begins with the words `I Owe You’, He pointed out and added, “ How come the US Federal Treasury owed a small time agriculture trader $5 billion?”.
Ramalingam told The Pioneer on Saturday that he was questioned for more than ten hours on Friday.
“I have answered all their questions,” he said.
Referring to media reports about his relations with certain politicians, Ramalingam said he did not know any politicians or their relations. He reiterated that all his savings were legal and transparent.
“I have been asked to be present in front of the Income Tax officials next Friday. I do not have anything to hide I have submitted all the documents they have asked for,” he said.
Krishna Elango, lawyer of Ramalingam told this correspondent that his client had answered all questions put to him by the interrogators. About Ramalingam not filing Income Tax returns for the last four years, Elango said there was nothing wrong in it.
“We have filed an appeal in front of the Income Tax officials explaining the reasons behind non-filing of the tax returns,” he said.
According to Elango, Ramalingam has friends spread across the globe and there was nothing strange in him making investments in Treasury Bonds and International Bills of Exchange. Anyone can do the same,” he said.
When asked how a small-time agriculture commodity trader could amass wealth of this magnitude, Elango said anyone could make such investements.
“Ramalingam’s friends helped him a lot,” he said.
Regarding his client’s decision to set up a petroleum refinery in Ramanathapuram district, he said the proposal was with the Ministry of Petroleum and Chemicals and there was no illegality in it.
“The Union and State Governments have declared lot of incentives to set up industrial units in backward districts like Ramanathapuram. We are working on the feasibility report,” he said.
Both Ramalingam and Elango sounded confident when asked about the legality of the business deals.
“Please wait till the completion of the probe by the Income Tax Department. You will understand that all the dealings are legal and fair,” said Ramalingam.
Elano said Ramalingam has followed meticulously the rules and laws dealing with foreign exchange regulations and management.
“The raid is a fallout of an anonymous letter sent by someone,” he said.
Murali Mohan, Additional Director-General, Income Tax, said the department was in the process of examining the authenticity of the Bills and it would take at least a week for confirming their genuineness.
http://www.dailypioneer.com/home/online-channel/360-todays-newspaper/120402-mystery-around-tirupur-traders-wealth-deepens-.html
I have committed no offence: Ramalingam
Press Trust Of India / Jan 06, 2013, 00:01 IST
As tax authorities were trying to establish the genuineness of international bills of exchange with a face value of $5 billion, the Tamil Nadu businessman from whose house they were seized, on Saturday said he has not committed any offence in the creation of wealth.
"I have not earned a pie by any wrong means. You will come to know after the enquiry. That is the truth...", Ramalingam, a groundnut trader, told Sun news channel, a day after he was grilled by Income Tax authorities.
Ramalingam, whose residence was raided last week by tax sleuths who seized the documents with a face value of Rs 27,000 crore, said he had given complete information to the authorities.
http://www.business-standard.com/india/news/i-have-committed-no-offence-ramalingam/497897/
Published: January 5, 2013 23:31 IST | Updated: January 5, 2013 23:32 IST
Tirupur trader asked to appear before I-T officials in Chennai again
M. Soundariya Preetha
R. Vimal Kumar
T.M. Ramalingam, a trader based in Dharapuram, Tirupur, from whose house international bills of exchange with a face value of $5 billion were seized, will have to appear before Income-Tax authorities in Chennai again on January 11. He was questioned for nearly 10 hours on Friday. “They have asked me to come again for another round of interaction,” Mr. Ramalingam told The Hindu here on Saturday after returning from Chennai.
I-T officials had questioned him from 11.50 a.m. to 10.30 p.m. “In between, they gave me a 45-minute break to take lunch and provided me tablets to bring down my fever,” he said.
He refused to divulge details of questions posed by the officials. The officials were polite despite bombarding him with questions, he said.
Mr. Ramalingam was disappointed that the I-T officials did not allow his lawyers to accompany him during the questioning. When contacted, I-T department sources told The Hindu that it was not an interrogation and only a ‘fact-finding’ session where he was only asked about the sources of income, and no points of law were involved. “In such cases, lawyers cannot be allowed inside,” they said.
Mr. Ramalingam claimed that he had filed I-T returns for two years for his company Baranidhar Refinery Private Limited. He claimed that he had two companies — Vallinayagi Traders and Baranidhar Refinery. Baranidhar Refinery was registered with the Registrar of Companies. He was unable to file I-T returns for Vallinayagi Traders and Commission Agencies for the last four years.
The trader said he had rented out a portion of his land adjacent to his house in Dharapuram to a petrol bunk. The petroleum company had not given the TDS (tax deducted at source) certificate for the last four years for the rental and hence, he was unable to file the I-T returns for Vallinayagi Traders.
Mr. Ramalingam said he had a PAN card and had never made any attempt to encash the bills of exchange.
To a question whether the bills of exchange seized were in Singapore dollars, he replied in the negative.
http://www.thehindu.com/news/national/tirupur-trader-asked-to-appear-before-it-officials-in-chennai-again/article4277130.ece?homepage=true