Now, NSEL investors come under Mumbai IT department scanner, letters sent

VIRENDRASINGH GHUNAWAT   |   HEADLINES TODAY  |   MUMBAI, SEPTEMBER 26, 2013 | UPDATED 00:51 IST

The investigation wing of Mumbai income tax department is not leaving any stone unturned in NSEL scam.

After questioning 24 borrowers (defaulters), surveying top brokering firms and conducting searches on Anand Rathi Commodities at 20 locations, now it's the investors' turn who have to face uncomfortable questions of income tax officials.

Mumbai IT department has sent letters to large number of investors based in Mumbai and across the country - seeking their investment details. Headlines Today/Aajtak has the copy of that IT summon in hand.

In this letter - the annexure for summons u/s 131 of the Income Tax Act, 1961 has sought - information and documents, such as:

• Name, address, contact numbers and PAN of all directors/partners (in case of companies/firms)

• Name and address of the brokers through whom investor have traded/invested in NSEL

• Copy of account of the broker(s) and/or NSEL in investor books for the FY 2010-11, 2011-12, 2012-13 and 2013-14 (to date)

• Contract-wise details of profit/losses or income from investment in respect of contracts for each of the years referred.

• Copy of income tax return, final accounts with schedules of last three years.

• Copy of agreement entered with NSEL /any broker (s) or any other person regarding investment /trade in NSEL

• Details of brokerage/commission and mode of payment

• Details of bank statement through which mode of payments have been made /received for investor's trade/investment in NSEL

When contacted, Director General of Income Tax (investigation), Swatantra Kumar confirmed the issuance of summons to NSEL investors, saying, "Yes, we have sent letters to NSEL investors to examine their sources of investments and whether they have paid their interest on income /profit."

The department suspects that a part of money collected from investors was diverted to other activities by some of the brokers. A senior official confirms, "In our preliminary investigation, we have found that few brokers have funded money like an investor."

After two days, IT department has concluded its search operation on Anand Rathi Commodities.