Yash Birla Group Faced Enquiry From Income Tax Department
Yash Birla group have to give an explanation to Income-tax department for five undisclosed foreign bank accounts,which hold more than Rs.300 crore, according to information accessed by ET.Based on a lead from the financial intelligence unit of the finance ministry, a six month investigation is embarked by IT department. The department already conducted search and seizure operations at group companies more in more than 15 locations in Mumbai and Delhi. The group officials have been by the IT officials under section 131 of the income Tax on the issue.
The Yash Birla group didn’t replied or even respond to detailed queries sent by ET regarding the four accounts opened in foreign. From four accounts one is in Switzerland which was opened by Ashok Birla(father of Yash Birla, prior to his death in 1990), the other three accounts are in Singapore and one of them showed balance of about $50 million (rs 300 crore). One of the Singapore account is with Credit Issue.
The company officials are not cooperating with investigations so the Cash in accounts except one account is not known. Two accounts among these four accounts are maintained in the name of a trust formed in 2010-11 and the trustees operate the bank account on the instruction of Yash Birla, and the other two are in the name of Yashovardhan Birla.
The investigation team said that the exact source of cash in these bank accounts are unknown because the company officials not cooperating with them, and the company officials are ignoring the department notice and are trying to mislead the investigation.
To attach the personal assets of Yash Birla and that of the other group of companies in Singapore, the IT department has initiated proceedings. The investigation department has also written to the foreign concerned authorities in Switzerland, Singapore and other countries through it’s foreign tax and tax research division seeking details of the accounts. The departments has doubt about the money in the Singapore accounts has already been moved elsewhere. The Birla group running since from 150 years, and is present in sectors such as auto, engineering, steel pipes, machine tools, iron casting, pumps and electrical appliances.