The income-tax department on Thursday conducted searches on premises of some members of the National Spot Exchange (NSEL) that defaulted on payment earlier this week, a senior exchange executive said.
Dozens of taxmen conducted the searches in Mumbai, Ahmedabad, Hyderabad, Kolkata, Nagpur, Jaipur and a few other locations, another source said. The move is aimed at checking the books of these defaulters, apart from assessing commodity stocks in their warehouses to ascertain any possible tax evasion, he added.
The sleuths are believed to have gathered financial details of these member entities from NSEL and the Forward Markets Commission (FMC) — the commodity futures market regulator.
On Tuesday, NSEL said nine members — NK Proteins, Lotus Refineries, ARK Imports, Loil Overseas Foods, NCS Sugars, Spin Cot Textiles, Tavishi Enterprises, Vimladevi Agrotech and Yathuri Associates — didn’t make any payment. Against the next scheduled payout of R174.72 crore on August 27, only R40 lakh had been received from Juggernaut Projects as of Wednesday.
Since some other members also paid less than required, the payout stood at just R92.12 crore on Tuesday compared with the scheduled amount of R174.74 crore. On Tuesday, the exchange also removed its MD & CEO Anjani Sinha and six others from their respective posts and aksed them to assist in the recovery of dues.
According to a list put out by the exchange on August 16, these nine members accounted for dues of R3,135. 29 crore out of the total outstanding of R5,572.75 crore. The exchange has announced that all payments are scheduled to be completed within 30 weeks.