Citizens' Issues
Black money: Export, import operators under government scanner

According to preliminary probe based on assessment of past two year trade transactions, a number of 'fly by night' exporters and importers have been found in routing of black money

 
New Delhi: Trade transactions by a host of export and import companies have come under the scanner of central economic intelligence agencies for alleged money laundering and tax evasion, reports PTI.
 
Sources said officials from the Central Economic Intelligence Bureau (CEIB) and Directorate of Revenue Intelligence (DRI) have found details of suspicious trade transactions by some of the firms, based in major industrial hubs of the country including Mumbai, Delhi, Surat and Ludhiana, which were manipulating import and export invoices thereby generating black money.
 
According to preliminary probe based on assessment of past two year trade transactions, a number of 'fly by night' exporters and importers (who only export or import goods once and then vanish) have been found in routing of black money and the officials are trying to ascertain their whereabouts, they said.
 
"We have come to know over 100 such suspected trade dealings in Middle East, the US and the UK among others. Most of these transactions seem to be dubious and the address of the recipients and booking agents here have been found to be incorrect," a source said.
 
He said the details of these exports will also be shared with the concerned authorities in those countries.
 
In addition, economic intelligence agency officials have found certain dubious consignments sent to India, most of which are lying unattended at various air and sea cargo stations, and examining them to know their background.
 
Last month, the DRI had claimed to have busted over Rs1,000 crore hawala racket in Punjab involving certain international syndicates and Delhi-based businessmen.
 
The officials claimed they have exposed the racket while probing a scam by an exporter who fraudulently used inflated bills to misuse a duty drawback scheme run by the Finance Ministry and gained incentives worth Rs60 crore.
 
"There has been spurt in activity related to Trade Based Money Laundering (TBML). All field officials have been told to cross check export and import consignments in case of any suspicion," the official said. 
 
TBML is the process of transferring or moving money through trade transactions. In practice, this can be achieved through misrepresentation of price, quantity or quality of imports or exports.
 
According to a recent Finance Ministry report on black money, the international trade system is subject to a wide range of risks and vulnerabilities, which provide unscrupulous entities the opportunity to launder money.
 
"Companies and individuals also shift money from one country to another to diversify risk and protect their wealth against the impact of financial or political crises.
 
"A common technique used to circumvent currency restrictions is to 'over-invoice' imports or 'under-invoice' exports. The primary method used is the falsification of import and export invoices," the report said.
 
Misuse of export promotion schemes such as drawback, Duty Entitlement Pass Book (DEPB), Duty Free Import Authorisation (DFIA), Vishesh Krishi Gram Upaj Yojana (VKGUY), also lead to generation and flow of black money, it said.
 
"Several cases of forgery of export promotion scheme scrips or licenses, meant to claim duty exemption in imports have been detected, which highlight another aspect of black money generation and movement," the report said.
 

User

Tata Realty to invest over Rs1,700 crore in next two-three years

Tata Realty also plans to develop six hotels in India-- one each in Goa, Bangalore, Andamans and Nagpur and two in Chennai-- Taramani and Siriperumbudur

 
Kochi: Tata Realty and Infrastructure Ltd (TRIL) said it proposes to invest over Rs1700 crore in two to three years for various projects in the country, including Rs550 crore in Kochi for a premium waterfront residential property, 'Tritvam', at Marine Drive, reports PTI.
 
Apart from Rs600 crore for developing roads, TRIL, a unit of Tata Sons Ltd, would also invest Rs180 crore in Logistics and Rs160 crore in developing real estate part of Hotels, Sanjay G Ubale, the company's Managing Director and CEO, told reporters.
 
The group plans to develop six hotels in India-- one each in Goa, Bangalore, Andamans and Nagpur and two in Chennai-- Taramani and Siriperumbudur.
 
On 'Tritvam', he said five towers with a total of 468 apartments would be built on about 8.44 acres.
 
The project has been designed by Internationally acclaimed and award winning Australian architectural firm Woods Bagot and construction has been awarded to Leighton, one of India's largest international contractors.
 
Kochi, considered Kerala's commercial capital, has grown at an unprecedented rate with the real estate sector alone showing a growth rate of over 30%, he said.
 
The project with a total development area of 1.18 million square feet, would have three, four BHK spacious duplex flats with various amenities like a 13,000 square feet club house, squash and tennis court, jogging track, Yoga studio, swimming pools with pool decks and cafes.
 
Piling for the project is almost complete and is expected to be ready by December 2014. In 18-20 months, about 180 apartments in two of towers are expected to be completed.
 

User

ICICIdirect to launch BSE derivatives trading from 21st August

ICICIdirect said the launch is aimed at providing an opportunity for retail customers to participate in the fast growing derivatives segment of the BSE

 
Mumbai: ICICI Securities, the largest integrated securities company on Monday said that it will launch BSE derivatives trading on its investment portal from 21st August, reports PTI.
 
The launch is aimed at providing an opportunity for retail customers to participate in the fast growing derivatives segment of the BSE, a statement issued here said.
 
"We are glad to offer additional choice of exchange and index for our customers to trade," ICICI Securities MD & CEO Anup Bagchi said.
 
With the launch of BSE derivatives on ICICIDirect, which has a customer base of over 2.3 million, the reach of derivatives segment of BSE would increase and the retail segment of investors would be able to participate in a larger way at a fraction of cost," BSE's interim CEO Ashish Chauhan said.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)