Legal

Income Tax department set to book Nirav Modi under the black money law

Updated : June 14, 2018 04:10 PM IST

Those found with undisclosed foreign assets or income can face rigorous imprisonment and fine.

The department has approached tax authorities in various places such as the Bahamas, Cyprus, Singapore, Jersey and Mauritius.

Nirav Modi is reportedly a settlor and beneficiary of Monte Cristo ventures Ltd.

Income Tax department set to book Nirav Modi under the black money law

The income Tax department is all set to initiate proceedings against Nirav Modi under the black money law, a report in The Economic Times said today.

The department has approached tax authorities in various places such as the Bahamas, Cyprus, Singapore, Jersey and Mauritius in order to seek details about Nirav Modi’s accounts and other entities linked to him, ET reported on Tuesday.

This was done after the authorities discovered that a number of overseas entities were used to direct funds to Indian companies, leading to suspicion that money may have been round tripped using shell structures in the tax havens.

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, was implemented by the government as part of its election pledge to root out unaccounted wealth and stamp out corruption.

Those found with undisclosed foreign assets or income can face rigorous imprisonment and fine. It also allows the government to approach another country with which it has an agreement to seek recovery of tax under section 73 of the Act.

Nirav Modi, who is wanted for his role in the Rs 14,000 crore Punjab National Bank (PNB) fraud case can now be subjected to up to seven years of imprisonment if proven guilty under the black money law.

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