The Income Tax (IT) department has made a provisional estimate of the undisclosed income of stock broker Ketan Parekh at around Rs 579 crore.
The estimate by IT includes Rs 535 crore of Panther Fincap & Management Services Ltd (PFMS), Rs 7.1 crore of Triumph International Finance India Ltd, Rs 9.5 crore of Classic Credit Ltd, Rs 7.42 crore of Niyoshi Trading and Investment Pvt Ltd and Rs 20 crore of Panther Investrade Ltd.
The provisional estimate of the department on PFMS of Rs 535 crore related to squaring up transactions with Mahur Shares & Stocks which has to be probed further, the internal investigation report pointed out. The estimate of Rs 20 crore on Panther Investrade is in accordance with the operating profit -- the value of the closing stock to be taken at the market value, the report said.
Listing out the modus operandi of the group, the IT department report said that "KP sent large amount of money to support the transaction done by his brokers in the manner desired by him."
PFMS had made a payment of Rs 175 crore to Madhur Capital & Finance (MCFL). According to the IT department, the KP group could not give answers for the advances of this money to MCFL.
The IT department has also pointed out that the MSSL had purchased shares at high rates from PFMS even when the prices were falling. The funds for these transactions were also provided by KP through a circuitous route.
One of the other methods of KP, according to the income tax department, was to do business in the name of non-existing or dummy clients to park profits or buy losses. The department has alleged that the business was done in such names and addresses which did not exist at all. Also for many of the transactions no client name was given. In those cases where the client names were given, there was no address mentioned.
Classic Credit Ltd apparently struck deals without any agreement for trade. Investigations by the income tax department had revealed that bogus bad debts of Rs 7.02 crore were shown in the name of persons who had categorically denied having done any business with the Triumph group of companies.
