Raids show I-T violation by HMTV boss’ chit firm

Kapil Chit Funds ‘accepted’ demonetised currency

Income-tax raids on April 7 and 8 on the premises of Kapil Chit Funds Private Limited, a group firm led by HMTV TV promoter K. Vaman Rao, led to a claim that the company accepted demonetised currency from its customers between November 10 and 30.

Based on information provided by the Central Board of Direct Taxes (CBDT), of suspicious deposits of `90 crore in demonetised currency, income-tax officials searched the offices and branches of the chit fund company as well as the residences of the heads of the chit funds in 30 locations in TS and AP. The I-T teams say they verified from CCTV footage that postdemonetisation, the head and branch offices had “accepted” old `500 and `1,000 currency notes from customers.

An I-T officer told this newspaper that the evidence has been sent to the Reserve Bank and information on the possibilities of money laundering will be sent to the Enfor-cement Directorate.

“The RBI issued clear instructions on the exemptions on November 8, 2016, after the Prime Minister’s speech on demonetisation, that only petrol bunks and hospitals could accept the old currency notes and the rest of the commercial and business establishments should consider the old `500 and `1,000 as invalid after 11.59 pm of November 8, 2016. The chit fund company violated the rules of the RBI,” the officer said.

He said the investigation is still going on. “So far, there is no evidence of the diversion of demonetised currency from other businesses of the Kapil Group to Kapil Chit Funds. Our teams have been concentrating on this aspect as there is scope to divert funds from the real estate sector. We have issued notices to the chit funds seeking explanation.”