Nagpur: After over a year of legal wrangling, the Income Tax (I-T) Department has finally won the battle with the police for possession of assets seized from alleged bookie Anant (Sontu) Jain.
Following a sensational raid, police had confiscated Rs 70 crore in cash and Rs 11 crore worth of jewellery from Jain’s premises. With a recent court ruling in the I-T Department’s favour, the assets are set to be transferred from police custody within the next couple of days, as reported by a local newspaper.
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Sat 21 Dec. 2024
The raid on Jain’s property was initiated after businessman Vikrant Agrawal lodged a complaint, claiming he had lost Rs 58 crore in a betting racket allegedly run by Jain. During the raid, authorities discovered large sums of cash and valuable assets. While the police handled the criminal aspect of the case, the I-T Department sought to claim the seized cash to investigate potential tax evasion and the source of Jain’s and Agrawal’s incomes.
The I-T Department had approached the court to gain possession of the assets, as its investigation into the tax implications hinged on first securing the seized funds. Initially, the court allowed the transfer of assets but imposed conditions, requiring the department to deposit the amount in a fixed account and submit an indemnity bond in case of any theft or loss. The department later filed a fresh plea to have these conditions removed, which the court granted, clearing the way for the transfer.
Once in possession of the cash, the I-T Department plans to deposit it in designated Personal Deposit (PD) accounts, which are government-held accounts separate from conventional banking systems. The funds will remain in the government exchequer until the final tax assessment is made. If any tax liability arises, it will be deducted from the seized amount.
The department’s investigation wing will now begin its probe, starting with a preliminary appraisal report that will help determine Jain’s and Agrawal’s final tax liabilities. According to the report, there is a significant discrepancy between Agrawal’s declared income in previous tax filings and the amount he claimed to have lost in betting. While he reported annual income in the range of lakhs, his losses from the alleged racket run into tens of crores. This disparity will form a critical part of the I-T Department’s ongoing investigation into both men’s financial dealings.
With the seized assets soon in its possession, the I-T Department is now poised to move forward with its investigation, which could potentially reveal significant instances of tax evasion and undisclosed income.
