I-T raids 20 premises linked to Choksi; shell firms under scanner

The Income Tax Department today raided 20 premises linked to Gitanjali Gems promoter Mehul Choksi and suspected shell firms in connection with an alleged tax evasion case against them, official sources said.
They said the searches, launched at about 4pm, were being conducted in Mumbai, Pune, Surat, Hyderabad, Bengaluru and a few other cities against 13 companies linked to Choksi, his jewellery firm Gitanjali Gems and others.
Sources said the action was being undertaken to check the activities of some shell firms allegedly routing funds in this case.
PTI had first reported on February 18 that at least 200 shell firms and "benami" assets had come under the scanner of the investigative agencies probing the Rs 11,400-crore alleged fraud at the Punjab National Bank (PNB) that also involves Choksi's relative, billionaire diamond jewellery designer Nirav Modi.

The I-T department has found that in the context of these entities that are being searched today, "huge investments were made in assets from unaccounted sources, diversion and layering of funds was done after these were received as loans from sources having doubtful creditworthiness as no interest has been paid on loans", an official said.
A firm identified as Priyanka Gems Private Limited is also under the scanner of the department as are also some shell or bogus companies which do not carry out any business activity but have been used to conduct huge transactions in the past.

"The raids are to collect documents and hard evidence. The action against shell firms is being magnified," a senior official said.

Twenty premises are being raided by a team of over 110 I-T sleuths, the sources said.
The department had recently attached the bank accounts and other assets of Choksi and the Gitanjali group.
Choksi, Nirav Modi and others are being investigated by multiple probe agencies after it recently came to light, following a complaint by the Punjab National Bank, that they had allegedly cheated the lender of Rs 11,400 crore, with the purported involvement of a few employees of the bank.
The Central Bureau of Investigation and the Enforcement Directorate have registered two FIRs each to probe the case.