Millennium Post

IT probes foreign banks, brokers on investments

The Income Tax department is probing a few foreign banks and financial brokers after it was tipped off about large scale illegal high returns investment programme being executed in violation of RBI guidelines.

The investments and returns scheme, called the Private Placement Programmes [PPP], is devised where an exceptional amount of returns are guaranteed within an extremely short tenure and the IT is probing suspected tax evasion to the tune of Rs 800 crore during the last two years in this alleged tax crime. According to sources privy to the development, the department was alerted about these schemes, being run by some private players and foreign banks, after economic intelligence agencies like the Central Economic Intelligence Bureau [CEIB] and others provided them with such inputs last year.

The PPP, according to RBI and tax laws, are not permitted in Indian economic channels and any investment returns programme can only be undertaken after obtaining due clearance from these agencies. ‘A probe is underway. The names and identities of the case cannot be disclosed as the department is gathering evidence,’ they said.

In a typical PPP, brokers offer as much as 200-300 per cent returns to an account holder over a short period of time through pledging of Fixed Deposits [FDs] and the resulting amount is utilised in some other high return investment avenue.
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