T M Ramalingam's 'Rs 28,000 cr' US treasury bonds story a hoax

US treasury bonds with face value of USD 5 billion found in possession of a Tamil Nadu-based trader were fake but the government would inquire about his frequent visits to Myanmar, a Finance Ministry official said today.

Indian taxmen were interrogating Tamil Nadu businessman from whose residence US Government bonds with a face value of Rs 28,000 crore (USD five billion) were recovered during a raid.

"The US treasury bonds (of face value of USD 5 billion) recovered from the trader have been found to be fake. However, we are trying to find why was he frequently visiting Myanmar," the official said.

Barclays Bank, according to reports, had earlier informed the I-T officials that the Treasury Bills seized from the Tamil Nadu trader T M Ramalingam were fake.

On December 31, 2012, I-T department raided his residence at Dharapuram in Tirupur district and seized the Treasury Bills. Following the raid, the tax officials grilled Ramalingam who is a groundnut merchant by profession.

Under the current foreign investment rules, individuals are allowed to invest up to USD 2,00,000 outside the country.

On repatriation, any such investment in movable assets abroad has to be converted into rupees.

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