New Delhi, Feb 26: Income tax authorities have detected international transactions worth over Rs 515 crore of Nirav Modi group companies related to imports and exports with various associated enterprises which he failed to report to international taxation authorities.
I-T authorities seized at least 150 paintings owned by Nirav from a warehouse in Mumbai. “These paintings are of different sizes and by eminent artists, including Raja Ravi Varma and Jatin Das,” a top I-T official said. The tax department has taken possession of these assets and is assessing their value.
The I-T department has drawn a list of associated enterprises in a year-wise manner with which Nirav’s group companies conducted dealings that were not reported. The actual value of these deals by applying transfer pricing norms is being assessed. The transactions are being examined for mis-declaration of value and pricing with the purpose of money laundering – an allegation for which Nirav is being investigated.
“Though these transactions were found in his books of account, but the same were not reported before appropriate authorities for transfer pricing adjustments which the tax officials are examining,” the top I-T official said.
Any foreign transaction of a company has to be declared in Form 3CEB prescribed by the I-T department. This mandates an entity to provide all details such as associated firms with which it had transactions, the names of such companies with address, besides details of all domestic transactions exceeding Rs 5 crore. Several shell companies allegedly associated with Nirav are being investigated. Nirav, the main accused in the Rs 11,300 crore PNB swindle, is also accused of non-disclosure of unspecified sales and import and export of diamond and gold jewellery.
Earlier, the tax department had evaluated Nirav’s stock of diamonds at his SEZs and found huge difference in valuation of the existing stock. According to an I-T assessment report, prepared last year after a search on his premises, Rs 1,216 crore of imported diamonds were allegedly diverted to the domestic market – though the gems were meant for export – after value addition. “There was huge difference in valuation of stocks at his SEZ after the department carried out valuation of physical stocks available through a government approved registered valuer,” the I-T official said.