‘339 shell companies diverted 2,900 crore to tax havens’

CBI sources said the shell companies were allegedly being used by the suspects to divert loan funds meant for specified purposes, creating fake invoices, and ‘round-tripping’ of funds to evade taxes and generate black money. Round-tripping is sending money to tax havens abroad in the guise of payments for fake imports through shell companies and bringing back that money, showing it as “foreign investment”. 

The findings of the CBI are just a tip of the iceberg as these are only those cases where the agency has been able to find ‘legally-tenable’ evidence of money trail, cheating and diversion of funds to cheat the banks, said the sources not willing to be named. The murky activities have been exposed during the CBI probe into various loan fraud cases involving 28 public sector banks and a private bank, the sources said. Besides this, the agency is probing about 200 bank fraud cases involving funds of at least Rs 30,000 crore, they said. 

The CBI is prosecuting these companies for corruption and scheduled offences associated with it. In addition, it will also refer these cases to other investigating agencies for action under various laws like the Companies Act, Prevention of Money Laundering Act, Benami Transactions (Prohibition) Act, Income Tax Act etc, the sources said. The agency has not only “exposed” these shell companies but also gathered enough material which would “plug” the possibility of them being used for any further operation, they claimed.