Tightening noose around the illegal entry operators, the Finance Ministry has detected routing of about Rs 250-crore black money through fake entries via non-existent business entities.
The modus operandi of providing ‘accommodation entries by entry operators’ was found by Central Economic Intelligence Bureau (CEIB). The bureau unearthed a nexus of certain operators with tax evaders who were converting black money into white worth crores through this, official sources said.
An information was received and developed regarding certain entry operators who were providing accommodation entries to their clients for a commission to evade income tax, they said.
As per the initial probe, illegal entries worth Rs 249 crore have been detected so far, the sources said.
The operators were showing black money to have been given to a non-existent company. Later, the same money was being given to a evader by misusing banking channels via cheques, they said.
The matter of illegal entry operators routing black money was also discussed during the last meeting of Economic Intelligence Council (EIC) headed by Finance Minister Arun Jaitley, the sources said.
The CEIB has shared the intelligence in this regard with the Directorate General of Central Excise Intelligence to ascertain any service tax liability in the matter. Other agencies will also be looking into the matter to check the flow of black money through accommodation entries, they said.
Income Tax department had also initiated investigation into issuance of cheques by companies which are acting as entry operators to convert illegal cash into legitimate money.
Recently in Kolkata, this investigation led to detection of substantial unaccounted income. In these cases, the unaccounted income was sought to be converted into legitimate money with the help of non-genuine companies which were acting as entry operators, according to a statement issued recently by the Finance Ministry.
Similarly, an enquiry was initiated in Delhi into issuance of cheques by companies which were alleged to be non-genuine and entry operators. The companies and their Directors could not be traced at the addresses given to banks and Ministry of Corporate Affairs, it has said.
Examination of the accounts of these companies revealed that they have issued accommodation entries to several persons and entities for substantial amounts, the release had said.