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StockGuru scam: More I-T officers in bribe net

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StockGuru scam: More I-T officers in bribe net

Ajmer Singh : New Delhi, Mon Apr 15 2013, 02:09 hrs


A Delhi Police report on the Rs 500 crore StockGuru scam says that senior Income-Tax officers investigating the case had "misappropriated" Rs 42-44 crore and demanded another Rs 30 crore "for showing favour" to the alleged scamsters.
The confidential report, based on spy camera footage and disclosure statements of the accused, forms the basis of the CBI's ongoing investigation of the case.

Ulhas Prabhakar Khaire, 33, and his 30-year-old wife Raksha J Urs were arrested in November 2012 for allegedly cheating over 2 lakh investors in several cities of an estimated Rs 500 crore. The alleged scamsters used multiple identities, impressive office paraphernalia and promises of huge returns to lure their victims.

The principal quid pro quo between the I-T officers and the alleged scamsters was the de-sealing of the latter's bank accounts.

The CBI booked Income-Tax Deputy Commissioner Yogender Mittal in January. The correspondence between the Delhi Police and CBI also names other high profile I-T officers Raman Kant Garg, Additional Commissioner, I-T, and S K Singh, Director, I-T (Investigations-II). The Delhi Police also concluded that the "active involvement and connivance of other officers of the concerned department cannot be ruled out...".

Singh was in charge of the I-T Department's ongoing investigation into HSBC accounts. Both Singh and Garg have since been pulled out of their highly sensitive assignments and given nondescript posts in the Central Board of Direct Taxes (CBDT).

The Delhi Police report, accessed by The Indian Express, says that of the additional Rs 30 crore bribe demanded by the I-T officers, Rs 15 crore was "obtained" by Mittal as "illegal gratification".

The report, prepared by the Delhi Police's Economic Offences Wing (EOW), was forwarded to the CBI's anti-corruption unit in December last year. The report said that "the amount involved in the alleged embezzlement points towards a well-entrenched process of demanding and receiving bribes".

The report says that the accused (Khaire) recorded conversations and footage of negotiations with I-T officers using a wristwatch camera. The footage was stored in two separate hard disks, which were seized along with the watch from his residence in Ratnagiri.

"A viewing of the videos in conjugation with the disclosure statement indicates that illegal money was seized by I-T officers and bribes were negotiated, facilitated and taken indirectly by one Yogender Mittal, the then ADIT Income Tax, to grant certain favours to the accused Ulhas Prabhakar Khaire, by misuse of his official position," DCP, EOW, K K Vyas wrote in his report to the CBI.

The EOW, in its communication to CBI, attached a report prepared by EOW Inspector Raj Kumar Saha, who investigated the case.

In his report to the DCP, EOW, Saha wrote, "It was revealed by the accused (Khaire) that Sh (Yogender) Mittal had spoken to other I-T officers Sh (Raman Kant) Garg and Sh S K Singh and had also apprised them about the offer of the accused. Later Sh Garg came to the flat in Dwarka where the raids were being conducted and told the accused to cooperate with Sh Mittal and also assured him that things would be sorted out."

The alleged deal, according to the Delhi Police report: "All frozen accounts would be opened if the accused could arrange money for him (Mittal)... (Khaire) provided information about his flat in Rajasthan to Mittal, where he had stashed away Rs 42-44 crore. It was agreed that 50 per cent of the said cash would be kept by the I-T officials for a favourable decision."

So, "Mittal... instructed (an associate) to bring all bags containing cash lying in the said flat. After a few hours, a call was received by him that all bags had been found. On the same day 2-3 bank accounts related to the accused were de-sealed and within the next week or so, all his bank (accounts) were de-sealed."

However, "instead of returning 50 per cent of cash, Mittal made further demand of Rs 30 crore to settle the matter", Inspector Saha wote, quoting Khaire's statement. "Accordingly, Ulhas paid first instalment of Rs 5 crore on 2.2.11 to an address in Lajpat Nagar, at the instance of Mittal, second instalment of Rs 10 crore was paid on 9.2.11 at the same place."

According to investigators, Khaire's disclosure statement and videos recovered from his computer "indicate that the recovered cash to the tune of Rs 42-44 crore was misappropriated by Income-Tax officers and further bribe of Rs 30 crore was demanded, out of which Rs 15 crore were obtained by Sh Yogender Mittal, through an unknown person".

Reached for a comment, the CBI spokesperson said the case was still under investigation. Sources said the allegedly misappropriated cash had not been recovered.

http://www.indianexpress.com/news/stockguru-scam-more-it-officers-in-bribe-net/1102581/0

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