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IT raids on brokers yield Rs 4.7 billion

NetScribes/Niranjan Prakash

Eight days after the nationwide raids commenced on the six brokers - who were linked to the bear hammering at the stock markets - top Income Tax officials connected with the raids have said that unaccounted money totalling Rs 4.7 billion has been uncovered to date.

These raids were carried out by the Income Tax department, with direct assistance from the Department of Revenue Intelligence and the Enforcement Directorate. All necessary details relating to these raids are provided to the finance ministry through daily briefings.

The six brokers interrogated include Bombay Stock Exchange ex-president Anand Rathi, the director of First Global Shankar Sharma, recently arrested local operator Ketan Parekh and also BSE members like Radhakisan Damani, Nirmal Bang and Rakesh Jhunjhunwala.

"We are studying all transactions conducted between February 21, 2001 and March 20, 2001. The focus is now going to shift towards whether any illegal foreign funds had been used in the bear hammering. We have so far uncovered about Rs 4.7 billion," says Anand Pathare, Deputy Investigating Officer and Assistant Commissioner of Income Tax of Zone I, Mumbai Circle. Most of these raids fall within the jurisdiction of this zone.

He also said that the annual account books of all the brokers have been sealed and are under scrutiny.

A BSE broker, on condition of anonymity, said that this amount seemed to be too low. It is rumoured that a broker - who is facing the IT raids - received up to Rs 11 billion from the National Stock Exchange and Rs 4.5 billion from the Bombay Stock Exchange through the pay-out of the settlement just following the Budget.

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