Tax authorities seize $5 billion bills of exchange from Chennai trader
CHENNAI, India (Reuters) - Tax authorities are investigating a possible financial scam after seizing $5 billion worth of bills of exchange issued by Barclays (BARC.L) from the home of a trader, an official at the local tax department said on Thursday.
The authorities seized five bills of exchange each valued at $1 billion from the home of T. M. Ramalingam during a December 31 raid, the tax official said. The bills were not the reason behind the raid, he said.
Ramalingam had applied for a licence to set up an oil refinery in Tamil Nadu with the money, the tax official said.
The bills were issued on February 25, 2011 and were due to mature in February 2015, according to a copy of one of the bills shown to Reuters by the tax official.
"We are in the process of verifying them as there is a possibility of a scam since the value is so high," said the tax official, who declined to be named as he was not authorised to talk to the media.
Chennai-based R. C. Mishra, director general of Income Tax Investigation declined to confirm or deny the raid or the investigation.
The tax authorities have asked Barclays about the impounded bills, the tax official said. A bill of exchange is similar to a banking draft between individuals or institutions.
Tax officials have confiscated Ramalingam's passport and called him for questioning on Friday, the tax official said.
Neither Ramalingam nor officials at Barclays were immediately available to comment.
(Reporting by Anupama Chandrasekaran; Writing by Rajesh Kumar Singh; Editing by Louise Ireland and Frank Jack Daniel)
- Tweet this
- Share this
- Digg this
- Fears for tough penalties grow as India cleans up business
- India warns Pakistan of more pain in Kashmir fighting
- No fear of deflation: Indian consumers respond to softer oil, food prices
- Giving pricey hepatitis drug to prisoners may be financially wise
- New Jerusalem find may shed light on Jewish revolt against Romans
India's biggest listed property company on Wednesday appealed for interim relief from a three-year ban from accessing capital markets by the regulator. Full Article