ED widens probe in biggest ever tax scam

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ED widens probe in biggest ever tax scam

 

NDTV Correspondent

 

Friday, March 9, 2007 (Pune):

 

A Pune based racehorse owner is at the centre of what is being billed

as the biggest tax scam in recent history.

 

Income tax raids at the home of Hassan Ali in Pune and Mumbai, more

than a month ago, led to explosive evidence of a worldwide

money-laundering racket.

 

" It is confirmed that a search was conducted by the income tax

department in Mumbai and Pune on a person associated with horse

racing, " said AK Sinha, CBDT spokesperson.

 

" About two months back, there were indications about foreign accounts

being found during a search. At this stage, the quantum of evasion as

the matter is still under investigation, " added Sinha.

 

Illegal transfers

 

Hassan Ali, known as the Sheikh in racing circles, has evaded taxes to

the tune of Rs 20,000 crore.

 

NDTV has learnt that Enforcement Directorate and IT officials have

reportedly questioned a man named Kashinath Tapadia, who is late

Priyamvada Birla's brother, in connection with the case.

 

The money is reported to have been illegally transferred to 10 Swiss

bank accounts.

 

Enforcement Directorate officials visited Switzerland in February with

documentary evidence and convinced the Swiss authorities to freeze

Hassan's accounts with them.

 

Out of 10, they managed to get seven accounts frozen.

 

Sources say Hassan Ali sent crores to countries that promise a tax

holiday like Mauritius, Cyprus and Madagascar through havala channels.

 

The profit earned from saving tax was then parked in a series of Swiss

bank accounts and then routed back through Mauritius to invest in

stock markets in India in the name of a dummy firm.