Chhabrias Kin Arrested For Diversion Of Swc Funds

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Meanwhile, officials of the income tax department's Mumbai branch have indicated that Shaw Wallace has admitted to a concealed income of Rs 22 crore in its Mumbai operations alone.

The disclosure follows country-wide raids by the department on the company in August this year. Shaw Wallace, however, has denied making such disclosures.

Thakur was arrested by a special ED team from Calcutta which searched 11 places in Mumbai and its suburbs during the previous two days and seized documents indicating various deals from the city and siphoning of funds.

Described as a 'kingpin' by directorate officials, Thakur is a liquor distributor in Mumbai. He was yesterday remanded to judicial custody by chief metropolitan magistrate A M Thipsay till December 11.

 

ED officials said one method used by Shaw Wallace to generate cash was to show expenditure in the form of sales promotion of liquor, paid by the company by cheque. The company would then take the cash back and send it abroad or distribute locally on instructions by Manu Chhabria or some persons in Dubai. The entire operation was managed by Thakur in

Mumbai on behalf of Chhabria, ED officials added.

However, a message faxed to Business Standard by the Shaw Wallace spokesperson says: "We categorically deny that Shaw Wallace & Co has made disclosures totalling Rs 22 crore to the income tax department in Mumbai."

According to information available with Business Standard, the total concealed income admitted to by the company is estimated at Rs 40 crore which includes its operations in Calcutta, Mumbai, Delhi and Aurangabad. Shaw Wallace has denied this too.

The investigation director in Calcutta, U P Singh, said: "The total amount of disclosures is yet to be fixed."

The Directorate in New Delhi has sought legal opinion on bringing Manu Chhabria to India for interrogation. The appraisal report is slated to be ready by the end of December, two months behind schedule, owing to the complex nature of the case.