NSEL fiasco: Taxmen raid brokerage firm Anand Rathi's Mumbai offices

Income-Tax Department on Tuesday conducted searches at the premises of a leading city-based brokerage firm with a high exposure to crisis-hit NSEL, for suspected tax evasion.

According to an Economic Times report,tax sleuths conducted extensive search and survey operations on the residential and official premises of leading brokerage and financial services firm Anand Rathi Financial Services, which has an exposure of around 629 crores to NSEL.

CNBC-TV18 reported that after collecting all the details of investors who traded with the borrowers from brokers, the I-T department is trying to ascertain how much money the brokers invested through proprietary accounts and how much of it was investor money.

 NSEL fiasco: Taxmen raid brokerage firm Anand Rathis Mumbai offices


Searches were conducted in over 15 offices of the firm for tax evasion, an Income-Tax Department official said.

The raid comes a day after the Arvind Mayaram panel, which is believed to have found some minor systemic problems in the function of the National Spot Exchange Limited (NSEL) , gave its report to Finance Minister P Chidambaram.

The Department had earlier carried out a survey on the brokerage firm and the searches were conducted after it got some clear leads, Income-Tax Department sources said.

National Spot Exchange Ltd (NSEL) is grappling with a payment crisis for settling dues worthR.5,500-crore and had to suspend trading activities following a Government directive on 31 July.

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

Updated Date: Dec 20, 2014 23:14:14 IST