Monday, December 8, 2014

Black Money Seizure Speed Up

Undisclosed income of Rs 7k cr detected-FE

The government has detected undisclosed income of Rs 7,685 crore in the first eight months of the fiscal in searches and surveys, more than half of which has been admitted by the assessees, Union finance minister Arun Jaitley  told the Parliament on Friday.

With this, the amount of undisclosed income thus found in the last four years has touched Rs 40,500 crore. In the the April-November period of this fiscal, assessees have admitted to income suppression of Rs 4,304 crore, Jaitly told the Lok Sabha. About a third of the undisclosed income would be the principal tax amount payable by the assessees excluding interest and penalty.

On the indirect tax side, tax evasion detected is much more. The alleged service tax, excise and customs duty evasion during the April-November period of this fiscal has touched Rs 9,220 crore.

Tax authorities have demanded Rs 5,097 crore of service tax, Rs 1,995 crore of excise duty and Rs 2,128 crore of customs duty from various companies, the minister replied.In the last four years, the amount of service tax evasion has touched Rs 59,315 crore, while excise evasion has crossed Rs 18,016 crore. Customs duty evasion in the same period has touched Rs 14,412 crore.

Customs officials detected cross-border tax evasion of Rs 1,380 crore so far this fiscal. Tax evasions in export and import have touched Rs 11,330 crore since 2011-12.

Court sentences Ramalinga Raju to six months imprisonment in Satyam fraud case

Raju also fined Rs 10 lakhs for violation of various provisions of the Companies Act-Business Standard-08.12.2014
The Special Economic Offences Wing (EOW) court here on Monday has sentenced the founder of erstwhile Satyam Computer Sciences, Ramalinga Raju and his brother Rama Raju to six months of imprisonment and a fine of Rs 10 lakh each for violation of various provisions of the Companies Act.

The former chief financial officer of Satyam, Vadlamani Srinivas, and former chief executive officer Ram Mynampati were also sentenced to 6 months imprisonment besides a fine of Rs 10 lakh each.

According to Serious Fraud Investigation Office counsel Raghu, the court has also  imposed a fine of Rs 20,000 each on  all former independent directors of Satyam-  Vinod K Dham, Krishna G Palepu, TR Prasad, BS Raju, Mangalam Srinivasan and Mendu Ramamohan Rao.

All the accused were given one month time for appeal against the judgment.

The economic offences wing  had filed a separate case with regard to the Satyam scam.The judgment in another case filed by the Central Bureau of Investigation (CBI) is slated for December 23.

All together EOW had filed seven cases against Raju and his former colleagues. Of these, they were convicted in six cases and acquitted in one case.  

On the other hand, the
CBI charged Raju and former employees of Satyam with offences ranging from falsification of records, cheating, criminal conspiracy, forgery and causing disappearance of evidence. No charges were made against former independent directors of the company.

Apart from Raju brothers , those charged by the CBI included Vadlamani Srinivas,  former  PWC auditors S Gopalakrishna and T Srinivas and former employees of the company Suryanarayana Raju, G Ramakrishna, D Venkatapathy Raju  and Ch Srisailam.

The Satyam scam came to light on January 7, 2009 when Ramalinga Raju confessed to a massive accounting fraud in the company.  He stated that the balance sheet of the company consisted non-existent cash and bank balances of Rs 5,040 crore, an accrued interest of Rs 376 crore which was also non-existent, an understated liability of Rs 1,230 crore and an over stated debtors position of Rs 490 crore (as against Rs 2,651 reflected in the books).

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