4 of 15 cattle killed as speeding truck topples during illegal' transportation

Mumbai, Feb 12: The Income Tax department's Criminal Investigation wing has identified 2,000 Indian citizens who hold properties in Dubai but had failed to declare it in their IT returns.

In its ongoing crackdown on black money, the agency has identified Indian citizens who purchased properties in Dubai but failed to declare and explain the source of funds used to purchase these properties.

In the past few years, people have used shell companies to route illegal money and buy overseas properties to evade income tax.

However, the tax department has now increased its efforts to track down those involved in major tax evasion cases.

The 2,000 persons and companies identified mainly include businessmen, top professionals, and government officials.

The IT department will initiate action against the accused under the Black Money Act.

Citizens who own properties outside the country but fail to declare the source of funds or income used for the purchase could be prosecuted under the Black Money Act.

Under Section FA (Foreign Assets) of the Income Tax Act, an individual has to declare purchase and ownership of properties, assets, companies owned outside the country while filing the income tax returns annually.

In the recent drive against black money, the IT department identified 2,000 Indian nationals who failed to provide information on the same while filing IT returns.

Of the 2,000 citizens owning properties in Dubai, around 600 could not furnish details regarding purchase details.

Those who haven't been able to explain the source of funds used for the purchase of properties could be prosecuted and their properties can be attached by the agency.

Other than the attachment of the property, they can face a monetary penalty up to 300 per cent of the property value and also face imprisonment under the Black Money Act.

The properties owned by Indians in Dubai raised red flags as this pattern of parking money is used by money launderers, smugglers, underworld gangsters and drug traffickers for making payments.

It is worth mentioning that of the 2,000 citizens identified, most are residing in Mumbai, followed by Kerala and Gujarat.

The clause under section FA (foreign Assets) came into effect in the year 2011-12 and it is mandatory for people owning properties outside India to declare it in their IT returns.

Those identified by IT department could also face action under FEMA (Foreign Exchange Management Act) by the Enforcement Directorate under Section 4.

Recently the Enforcement Directorate (ED) launched a crackdown on black money parked overseas by tracking and identifying immovable assets bought overseas by Indian nationals illegally.

The move is being carried out under rules laid down under Section 4 of FEMA (Foregn Exchange Manipulation Act), 1999. Section 4 of FEMA states that no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India.

On January 17, the Enforcement Directorate (ED) conducted searches at the residence of a former chief engineer of Brihanmumbai Municipal Corporation (BMC) in connection with an inquiry related to FEMA.

In the raids, the ED officials recovered documents related to the purchase of a property in Dubai in an allegedly illegal manner.

The ex-BMC chief engineer was posted with some of the most crucial wings of the municipal corporation -- the building proposal department and development plan department.

The agency did not disclose the name of the ex-BMC chief engineer but it has been learnt that he had superannuated around seven years ago from the municipal corporation.

ED, in a statement, said incriminating documents with regard to illegal acquisition of a property held in Dubai was recovered during the search operation.

The former BMC chief engineer has stated that he had purchased the property in Dubai at 'Park Island, Bonaire Marsa, Dubai' for Rs 70 lakh in 2012. The property is held jointly in his name, his spouse and son.

The retired BMC officials could not furnish any documents which would help ascertain the value of the property and also could not provide details on how the payments were made to buy the property in Dubai.

The citizens identified by the IT department recently also adopted a similar route to buy property in Delhi. It remains to be seen how the income tax department plans to penalise them.

Bengaluru, Apr 18: Hours after announcing that two-wheelers will be allowed to ply and that IT/BT companies can resume operations with 33 per cent strength, Chief Minister B S Yediyurappa on Saturday took a u-turn and rolled them back, citing “public opinion” as the reason. 

Earlier in the day, Yediyurappa announced that, after April 20, there will not be any restriction on the movement of two-wheelers in areas that are not COVID-19 containment zones. Yediyurappa also said that a third of IT/BT employees will be allowed to go to the office after April 20. 

“In the backdrop of public opinion and after discussions with senior officials, it has been decided that the prohibition on two-wheelers will continue throughout the lockdown period,” a statement from the Chief Minister’s Office said. “And in the IT/BT sector, only essential services will be allowed and the work-from-home policy will continue.” 

According to sources, the u-turn came following opposition from Yediyurappa’s Cabinet colleagues. “If I was in the meeting, I’d not have allowed it,” a minister said. Only Home Minister Basavaraj Bommai and Revenue Minister R Ashoka were in the meeting Yediyurappa held earlier in the day. The Opposition also stemmed from the fact that there was no need to make decisions on the lockdown when the Cabinet was scheduled to meet on April 20, sources said. 

The incoordination was apparent on Friday when Deputy Chief Minister CN Ashwath Narayan, the IT/BT minister, said 50 per cent of employees in the sector will be permitted to work while Yediyurappa said this would depend on the number of cases reported in the coming days. 

Other announcements made by Yediyurappa remain unchanged.

“Places, where COVID-19 cases are reported, will be identified as containment zones. In such containment zones, an incident commander will be appointed and given magisterial power. Teams comprising the police and health department officials will oversee the lockdown,” Yediyurappa said. “Lockdown will be much more stringent in these areas and no one will be allowed to step out. Essential supplies will be delivered home.”

According to Bommai, there were 32 containment zones in Bengaluru and ‘hotspots’ have been identified in eight districts.

With an eye on restarting economic activities, the government will allow construction work and industries. “In urban areas, construction work will be allowed to start wherever construction workers have the facility to stay on site,” Yediyurappa said. “The manufacturing sector in rural areas and industrial units located in the special economic zones (SEZ) and townships in urban areas will be allowed to function,” he said.

Stating that inter-state travel will be prohibited, Yediyurappa said the districts of Bengaluru Urban, Bengaluru Rural and Ramnagara will be considered as one only for the movement of industrial workers.

Asked about liquor sale, Yediyurappa said a decision will be taken after May 3. The government has already prohibited liquor sale till April 20 midnight.

Bengaluru, Jan 24: On the last day of his four-day trip to Davos, Switzerland, to attend the World Economic Forum, chief minister BS Yediyurappa urged the global business community to invest in cities other than Bengaluru in the state.

On Thursday, while extending an invitation to entrepreneurs to participate in the Global Investors Meet in November in Bengaluru, Yediyurappa highlighted the “conducive investment climate” in the state vis-a-vis others by pointing to its 7% growth rate which is much higher than the national average of below 5%.

He also pointed to the state’s rich history and the fact that it is home to a number of desi MNCs such as Infosys, Biocon Wipro and Dynamatics. “At the same time, the state has one of the lowest unemployment rates compared to the national average,” Yediyurappa said.

In his address to heads of businesses, industries minister Jagadish Shettar also urged investors to consider Tier 2 and 3 cities for investment. “Land banks have been created in Tier 2 and 3 cities and regional connectivity has improved. Let us strive to place Karnataka on a highgrowth path,” Shettar said.

Lending a “helping hand”, Union minister Piyush Goyal, in his address, appealed to the community to invest in Karnataka, which “has a robust and congenial industrial atmosphere”, but also urged them to spread “tentacles” to all parts of the country.