New Delhi: The Income Tax Department has sought prosecution of Reliance Group Chairman Anil Ambani under the Black Money Act under the Black Money Act for allegedly evading Rs 420 crore on undisclosed funds worth Rs 814 crore held in two Swiss bank accounts.

Anil was served a show cause notice earlier this month.

The Income Tax Department has accused 63-year-old Anil Ambani of tax evasion, saying that he deliberately did not disclose his foreign bank accounts and financial interest to Indian tax authorities. Ambani was issued a show cause notice in this regard earlier this month.

Anil Ambani to face up to 10 years in jail

Anil can be tried under Sections 50 and 51 of the Black Money (Undisclosed Foreign Income and Assets) Tax Act 2015, which provides for a maximum sentence of 10 years imprisonment with fine, the department said. Anil has been asked to respond to the allegations by August 31. However, there has been no response from Anil Ambani and his office on these allegations so far.


Accused of possessing undisclosed assets abroad

Anil Ambani has been accused of possessing undisclosed assets abroad for the assessment year 2012-13 to 2019-20 and evading tax through it. According to the notice, tax officials found that Ambani was the economic contributor as well as beneficial owner of The Diamond Trust, a Bahamas-based entity, and another company Northern Atlantic Trading Unlimited (NATU). NATU was incorporated into the British Virgin Islands (BVI).


Formed a company called Dreamwork Holdings

In the case of the Bahamas Trust, the department found that they have a company called Dreamwork Holdings Inc. The firm owned a Swiss bank account with a maximum balance of over Rs 255 crore (USD 32 million) as on December 31, 2007. The notice said the trust had received initial funding of about Rs 200 crore ($25,040,422).

Funding was done from Ambani’s personal account

The department alleged that the company’s account was funded from Ambani’s personal account. It was also found that Ambani had given his passport as a KYC document to open this trust in 2006. The beneficiaries of this trust were also his family members.

Leave a Reply