Citibank fraud: I-T initiates re-assessment of investors

The I-T department’s various tax assessment wings will undertake the process of re-checking of I-T returns and issuing subsequent notices after a high-level probe by its investigation wing found ‘capital gains’ at the hands of some of the high-networth individuals

New Delhi: In a double whammy for investors who lost their money in the Rs400 crore Citibank Gurgaon scam as the Income Tax (I-T) department has initiated a re-assessment of tax returns of these people to ascertain whether the money invested was reflected in their annual returns.

The department’s various tax assessment wings will undertake the process of re-checking of I-T returns and issuing subsequent notices after a high-level probe by its investigation wing found ‘capital gains’ at the hands of some of the high-networth individuals (HNIs).

“The various I-T ranges where these HNIs are assessed will begin a fresh check on the tax returns. They may also be summoned for questioning and production of additional documents from the assessment year 2009-10,” a senior I-T official said.

A capital gain is a profit that results from investments into stocks, bonds or real estate and is taxable under special rates.

A Gurgaon court has recently framed charges against former Citibank relationship manager and alleged mastermind of the scam Shivraj Puri and various others.

Different I-T offices including one in Chandigarh were involved in the probe to ascertain the flow of money and check if taxes have been evaded by these individuals—by way of non-reporting the funds that they put in the ‘investment scheme’ or by Mr Puri who is alleged to have duped them.

Several depositors and HNIs were duped in the Rs460.91-crore fraud.

Mr Puri is said to have perpetrated the fraud by mobilising these funds in an unauthorised manner from customers and certain companies for the purpose of investing in stock market.

Mr Puri is also alleged to have fabricated a circular of the SEBI to lure people into investing into accounts held by his accomplices Premnath, Shiela Premnath and Deeksha Puri.

The fraud came to light after the bank looked into a query from a customer at Citibank’s Nehru Place branch here about its scheme offering high returns.

After discovering the fraud, the Citibank on 5 December 2010, filed a complaint with the Gurgaon police which is investigating the case.

The entities whose funds were diverted by Puri into the accounts of his relatives include Hero Corporate Services (Rs13.75 crore), OKS Sapan Tech (Rs2 crore) and Satyam Auto (Rs25 crore).

Also, Mayar Infratech (Rs24 crore), Spaid (Rs62 crore), Karopat Pad (Rs8 crore), Sunil Kant and Sons (Rs3 crore), Aero Infratec (Rs25 crore), Hero Exports (Rs97 crore), Rekha Munjal (Rs5 crore), Munjal Investments (Rs2.5 crore) and Munab Braej (Rs71 crore) fell prey to the scam.

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BSE proposes index for climate change

The objective of the index is that it will help to build up expertise in analysing the risks and opportunities face associated with climate change, and with carbon regulation. This will also increase the information available to Indian companies and investors about these topics

Mumbai: Leading bourse Bombay Stock Exchange (BSE) on Thursday began the consultation process for launch of a carbon index, a move that will help investors mitigate their exposure to financial risks associated with the climate change, reports PTI.

The exchange yesterday released a concept note on its ‘Carbon Indexing Project’, marking the first-ever attempt to create a Carbon Index in an emerging economy.

The objective of this initiative is that it will help to build up expertise in analysing the risks and opportunities face associated with climate change, and with carbon regulation. This will also increase the information available to Indian companies and investors about these topics.

“The idea is that such an index will be used by investors to mitigate their exposure to financial risks associated with climate change,” the BSE said in a statement.

The concept note was jointly unveiled by Gregory Barker, the british minister of state for climate change and energy and Sachin Ahir, Maharashtra’s minister of state for environment.

Speaking at the launch, Mr Barker said, “We all, developed and developing countries have a responsibility for tackling carbon emissions, although coming to the issue from different starting points. But to develop this as an agenda compatible with growth we must understand what business can do.”

“A Carbon Index will help to understand how growth can happen on a lower carbon trajectory and the role that business can play. The index will highlight opportunities to companies as to how to improve both their financial and environmental performance,” he added.

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MF investors to now get consolidated details of transactions

The mutual fund industry has decided to issue Consolidated Accounts Statement (CAS) on monthly basis for transaction starting October. The CAS will be in addition to the individual account statements that investors get from their mutual fund houses

Mumbai: Mutual fund investors will now get a monthly consolidated statement of all of their transactions in different fund houses, reports PTI quoting the Association of Mutual Funds in India (AMFI).

The mutual fund industry has decided to issue Consolidated Accounts Statement (CAS) on monthly basis for transaction starting October, AMFI said in a statement.

“This is an investor-friendly initiative to allow investors a single-window view of all their transactions in mutual funds,” chief executive of AMFI HN Sinor said.

CAS will be issued as a monthly statement to investors, if there are any transactions during the month, he added.

The consolidation of folios is on the basis of PAN provided by the investors.

The decision follows amendment in the Securities and Exchange Board of India (SEBI) Regulations with regard to issuance of monthly Consolidated Accounts Statement.

The CAS will be in addition to the individual account statements that investors get from their mutual fund houses.

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