I-T Dept Searches 360 ONE WAM, Other IIFL Group Entities over Alleged Tax Evasion
Moneylife Digital Team 29 January 2025
The income-tax (I-T) department on Tuesday conducted search operations at the office of IIFL group and premises linked to 360 ONE WAM Ltd, formerly known as IIFL Wealth and Asset Management, and its founder, managing director and chief executive officer (MD&CEO), Karan Bhagat, say media reports.
 
In a regulatory filing, 360 ONE WAM says, "...the I-T department has today (Tuesday) initiated a search under the Income Tax Act, 1961, at the registered office of the Company situated in Mumbai. The Company is extending its fullest cooperation with the authorities with all the required information and documents. The business operations and services of clients continue in the normal course."
 
According to media reports, the searches were conducted at multiple floors of the 360 ONE WAM building at Kamala Mills in Mumbai's Lower Parel area. The search was also extended to the offices of other group companies, including IIFL Finance, IIFL Securities and IIFL Capital Services Ltd.
 
Meanwhile, after the search operations, IIFL Capital Services decided to reschedule its board meeting 'due to certain exigencies', the company says in a regulatory filing. IIFL Capital Services board was scheduled to meet on 28 January 2025 to consider and approve the company financials and declaration on an interim dividend. 
 
Last year in August, US-based short-seller Hindenburg Research claimed that Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch had a stake in obscure offshore entities used in the Adani money siphoning scandal. Ms Buch, however, 'strongly' denied the 'baseless' allegations and insinuations made in the (Hindenburg) report. Adani group also rejected the allegations terming it as 'recycling of discredited claims', which "have already been investigated and dismissed by the Supreme Court."
 
It alleges Ms Buch and her husband first appear to have opened their account with IPE Plus Fund 1 on 5 June 2015 in Singapore, per whistle-blower documents. "A declaration of funds, signed by a principal at IIFL, states that the source of the investment is 'salary' and the couple's net worth is estimated at US$10mn (million)," Hindenburg says.  
 
The short-seller had alleged that the Buchs invested in global dynamic opportunities fund (GDOF), in which Vinod Adani, brother of Gautam Adani, had invested. GDOF invested in IPE-Plus Fund 1, a small offshore Mauritius fund, managed by wealth management firm 360 ONE WAM (earlier India Infoline), Hindenburg claimed.
 
While 'strongly' denying allegations and insinuations made in the Hindenburg report, the SEBI chairperson and her husband say the US-based short-seller is attempting to attack SEBI's credibility and indulging in character assassination of the chairperson.
 
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