I-T survey on broker Ketan Parekh detects Rs 92 crore concea
PRANATI MEHRA

MUMBAI, JAN 12: The Income-Tax department's survey yesterday on leading stock broker Ketan Parekh's offices has led to the detection of concealment of income to the tune of Rs 92 crore, for the current year only. Parekh has apparently accepted the position and has already handed over post-dated cheques for Rs 26 crore towards advance tax liability after the survey. He has also agreed to pay the balance Rs 5 crore of the tax by March 31. And the BSE sensex which had crashed 222 points yesterday went up by 195 points today.

Confirming the figures, chief commissioner II, K.V.M. Pai said it was the largest ever figure detected in a survey in the recent past. He also said he would like to send out the message to the broking community to pay correct advance tax, now, given that the economy was on the upswing.

Parekh's operations through 12 companies were identified following the 24-hour long survey which created a sensation in the market yesterday.I-T sources reveal this figure is over and above the Rs 25 crore that Parekh had already paid as advance tax till yesterday for this financial year.

Market sources reveal also that Parekh's purchase of one ITC group company Classic Credit which had a sizeable carry forward loss, is also being investigated. Apparently, yesterday's survey also revealed that Classic Credit made an earning of Rs 60 crore despite this carry forward loss. By that count, Parekh's income for this year so far would be in the region of Rs 2OO crore.

I-T sources also said the material which the department could lay their hands on had indicated prima facie benami operations, but it would be some time before those details will unfold.

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