Black Money Act order against Anil Ambani: offshore assets Rs 800 crore

MOVING that undeclared offshore assets and investments have been detected, the Mumbai unit of the Income Tax Investigation Wing passed a final injunction in March 2022 against Anil Ambani, chairman of the Reliance (ADA) Group, under the Black Money Act (BMA) of 2015.

The Black Money Act injunction was filed following the issuance of notices to the industrialist on a web of alleged undeclared offshore assets, the first in 2019.

Buy now † Our best subscription now has a special price

The order lists offshore entities and details of transactions in linked bank accounts amounting to over Rs 800 crore. According to sources, this figure was calculated based on the current exchange rate of the rupee and the dollar.

The best of Express Premium
Anjum Chopra writes: Let's count the victories in women's cricketPremium
Tavleen Singh writes: Another exodus in Kashmir?Premium
An express inquiry – part 2 |  Class 5A Subject: MathematicsPremium
Has the sun finally set in the British Empire?  The Queen and the Commonwealth...Premium

Questions to Anil Ambani went unanswered. In February 2020, Ambani had declared in a British court that he was “bankrupt” and that his net worth was “zero”.

The BMA warrant details Anil Ambani’s Beneficial Ownership of entities in two offshore havens, the Bahamas and the British Virgin Islands.

In the Bahamas, he founded the Diamond Trust in 2006 with an “underlying” offshore company, Dreamwork Holdings Inc. In response to requests sent by the CBDT to the Bahamas through its Foreign Tax and Tax Research (FTTR) department, the existence of an affiliated Swiss bank account – in the Zurich branch of UBS Bank – came to light.

Another undeclared offshore company, listed in the BVI by Anil Ambani in 2010, is North Atlantic Trading Unlimited.

This company was found to have a linked bank account with the Bank of Cyprus. This entity was one of 18 entities linked to Anil Ambani in the recently published “Pandora Papers” research ranked by The Indian Express but was apparently already on the IT authorities’ radar.

What is described as “substantial” transactions have been detected in these foreign bank accounts with no charges on the offshore assets.

The final review injunction was issued in the Anil Ambani case under Section 10(3) of the BMA 2015, under which a review officer issues a final injunction after considering all the “bills, documents or evidence” collected.

It is understood that the responses of representatives of the chairman of the ADA group by the IT sleuths have been reflected in the final review assignment.

Previously, the chairman, Reliance ADA Group, was named in more than one offshore investigation by the International Consortium of Investigative Journalists (ICIJ) in conjunction with The Indian Express and other media groups.

In 2015, the “Swiss Leaks” investigation revealed that Anil Ambani was one of 1,100 Indians who held an account in HSBC’s Geneva branch. His balance in the HSBC account for the year 2006-07: $26.6 million.

Leave a Comment

Your email address will not be published.