Finance Ministry detects Rs 250 crore black money through fake entries

New Delhi: Tightening noose around the illegal entry operators, the finance ministry has detected routing of about Rs 250 crore black money through fake entries via non-existent business entities. The modus operandi of providing ‘accommodation entries by entry operators’ was found by Central Economic Intelligence Bureau (CEIB). The bureau unearthed a nexus of certain operators with tax evaders who were converting black money into white worth crores through this, official sources said.

Information was received and developed regarding certain entry operators who were providing accommodation entries to their clients for a commission to evade inco-me tax, they said. As per the initial probe, illegal entries worth Rs 249 crore have been detected so far, the sources said. The operators were showing black money to have been given to a non-existent company. Later, the same money was being given to an evader by misusing banking channels via cheques, they said.

The matter of illegal entry operators routing black money was also discussed during the last meeting of Economic Intel-ligence Council (EIC) hea-ded by finance minister Arun Jaitley, the sources said. The CEIB has shared the intelligence in this regard with the Directorate General of Central Excise Intelligence to ascertain any service tax liability in the matter.

Other agencies including Income Tax will also be looking into the matter to check the flow of black money through accommodation entries, they said. Recently in Kolkata, this investigation led to detection of substantial unaccounted income. Similarly, an enquiry was initiated in Delhi into issuance of cheques by companies, which were alleged to be non-genuine, and entry operators.