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Tuesday, November 24, 1998

Onion auctions to resume today

EXPRESS NEWS SERVICE  
NASHIK, November 23: The 100-odd onion traders, who had suspended work at the Lasalgaon, Pimpalgaon and Manmad wholesale marketyards since Friday, will resume auctions from tomorrow following the boycott in the wake of the Income-Tax (I-T) raids on four major traders in these three places.

In a letter addressed to the Lasalgaon Agriculture Produce Marketing Committee, the merchants' association have stated that all the traders will resume work from tomorrow. They had boycotted the auctions on the pretext that the weather was ``hostile'', claiming that last week's intermittent drizzle had damaged onions at their godowns.

The markets remained shut on Saturday and Sunday for the weekend break. With the boycott continuing, no transactions took place today as well.

I-T sleuths had raided four major traders on November 17 - Pukhraj Jain (Lasalgaon), Ratan Raka (Lasalgaon and Manmad), Shantilal Bafna (Pimpalgaon) and Shivcharan Lalwani (Manmad). While examining their account books, the officials foundcross-entries involving smaller traders as well. When the latter were summoned for interrogation and verification of the entries, panic spread culminating in the boycott.

Before suspension of trading on Friday, the price of onions averaged Rs 1,300 per quintal. The I-T officials, meanwhile, have completed their raids with investigations in 11 cases underway. The sleuths have discovered cash amounting to Rs 18 lakh, jewellery worth Rs 24 lakh, shares worth Rs 15 lakh and fixed deposits worth Rs 2 crore. Prima facie, assets worth Rs 16 lakh were unaccounted, while the sources of income for the fixed deposits are under investigation, sources say.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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