In the LOC case, Ashok Mittal of Royal Plaza is accused by IT of misleading the court by hiding foreign assets worth more than Rs 450 crores and having connections to the wanted hawala dealer, Nand Kishore Chaturvedi.

  Bharat Jeetega, Corruption Meetega!

PUBLIC INVESTIGATION

EXPOSE ON THE MAJOR HAWALA RACKET IN INDIA

Key players: Nand Kishore Chaturvedi and Ashok Mittal. One of the key document could be accessed here: https://www.scribd.com/document/694877440/DOC-20231212-WA0014

 (Note: All facts and documents are public and submitted in court. (The purpose of this article is to create public awareness and not target any individual.)

In the LOC case, Ashok Mittal of Royal Plaza is accused by IT of misleading the court by hiding foreign assets worth more than Rs 450 crores and having connections to the wanted hawala dealer, Nand Kishore Chaturvedi.

By Sunil Gupta

The income tax department informed the Delhi High Court that Ashok Mittal of Hotel Royal Plaza is trying to mislead the court in the LOC matter. It wasn't opened on suspicion of tax fraud, but because he had a close business relationship with the wanted hawala dealer, NandKishore Chaturvedi, and had documents showing that he had undisclosed foreign income and assets in the excess of Rs 450 crores.https://web.archive.org/web/20240104095528/https://www.ptinews.com/press-detail/IT-claims-Ashok-Mittal-is-a--flight-risk--with-450-crore-undisclosed-overseas-wealth--alleging-his-involvement-with-fugitive-hawala-trader-Nand-Kishore-Chaturvedi-in-a-Rs-50-crore-illicit-investment-in-Hotel-Royal-Plaza-in-2003-/293782

The offence committed by Ashok Mittal's is liable for prosecution under Sections 50 and 51 of the Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act 2015 ("Black Money Act") for cognizable offences having punishment up to 7 and 10 years. https://www.aninews.in/news/national/general-news/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad20220723165115/

At the hearing on November 22, 2023, the Respondent (Income Tax) told the Honourable Court that the Petitioner (Ashok Mittal) had based his whole case for quashing the Look Out Circular ("LOC") on the completely wrong assumption that the LOC was opened in his case because he didn't report his foreign income and assets on his Income Tax Return ("ITR") for the years 2015-16 to 2018-19, which was an attempt to mislead the Honourable Court, IT said in its affidavit. https://www.scribd.com/document/694877440/DOC-20231212-WA0014

It further stated that the LOC was opened via letter dated July 13, 2022, after search and seizure action under Section 132 of the Income Tax Act, 1961, was carried out on July 7, 2022, at the premises of Ashok Mittal, his family members, and his companies. "During the search, the department found incriminating material against the petitioner (Ashok Mittal), revealing that he has huge undisclosed foreign assets and income that he holds through a web of Shell companies incorporated in Malaysia, Dubai, the British Virgin Islands, and Malaysia. The quantum of such undisclosed foreign assets and income already available with the Department from the search and post-search proceedings amounts to more than INR 450 crores," it alleged. https://www.outlookindia.com/business-spotlight/delhi-high-court-upholds-loc-black-money-launderer-ashok-mittal-of-hotel-royal-plaza-by-abhinav-sharma-news-334756

"This incriminating material found not only relates to the period AY 2015-16 to AY 2018-19 but also to the years 2003 onwards. Therefore, the claim of the petitioner (Ashok Mittal) that the only reason for the issuance of the LOC is the non-disclosure of foreign income and assets during the years 2015–16 to 2018–19 are misleading," it alleged. https://www.asianprimenews.com/news/rp-mittals-plea-stating-hillcrests-investment-in-hotel-royal-plaza-is-a-proceeds-of-crime-tied-to-wanted-hawala-dealer-nandkishore-chaturvedi-is-accepted-by-dhc/

While the facts relating to the petitioner's (Ashok Mittal) income and assets from DAE/Dubai and the British Virgin Islands ("BVI") were mentioned in the counter affidavit, there were certain facts, including those relating to the petitioner's undisclosed foreign income and assets in Malaysia and Mauritius, that did not form part of the respondent's (income tax) counter affidavit. It is reiterated that during the search, the Department found incriminating material against the petitioner, revealing that he has huge undisclosed foreign assets and income that he holds through a web of Shell companies incorporated in Malaysia, Dubai, the British Virgin Islands, and Mauritius. The quantum of such undisclosed foreign assets and income already available with the Department from the search and post-search proceedings amounts relates to the period AY 2015-16 to AY 2018-19 but also to the years 2003 onwards. The evidence gathered during search and seizure operations reveals huge undisclosed foreign income and assets in the hands of the petitioner, and the petitioner is also liable to prosecution under Sections 50 and 51 of the Black Money (Undisclosed Foreign Income & Assets) Imposition of Tax Act 2015 ("Black Money Act") for cognizable offences having punishment up to 7 and 10 years.

For the first time, IT also disclosed their findings on Ashok Mittal's close business partnership with Nand Kishore Chaturvedi. "The nature of operations uncovered during the search operations also revealed the petitioner's (Ashok Mittal's) constant involvement with one Nand Kishore Chaturvedi, who is a Hawala operator and currently a fugitive. Nand Kishore Chaturvedi and his brother Vivekanand Chaturvedi have been close associates of the petitioner (Ashok Mittal), the power of attorney holder in the petitioner's (Ashok Mittal) Mauritian and BVI-based entities, and also his auditors for more than 15 years, as per the material seized during the search operations," it alleged. https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08

It further submitted that its investigation is at a very crucial stage and the Department is trying to obtain further information from the foreign tax authorities relating to the undisclosed foreign assets and income of the petitioner (Ashok Mittal). The respondent (income tax) has already made FT (foreign tax) and TR (tax research) references to the concerned authorities of all four countries—Dubai, Malaysia, BVI, and Mauritius—and is awaiting their responses.  As a result, the LOC was opened in the petitioner's case because, given the above facts and circumstances and what was found during the search and seizure operations, there is a very good chance that the petitioner, if allowed to travel abroad, will try to tamper with the evidence that the respondent (income tax) is trying to get from the foreign tax authorities. This will clearly be against India's economic interests as his entire undisclosed foreign income and assets, which, as per the existing information with the department, already exceed INR 450 crore approx., will go unaccessed.

 

INTERESTED IN KNOWING MORE ABOUT WHO IS ASHOK MITTAL & NAND KISHORE CHATURVEDI? Just click on following links, based on media reports.

1..https://ashokmittalhotelplaza.blogspot.com/2023/12/the-media-exposes-fugitive-hawala.html

2. https://ashokmittalhotelplaza.blogspot.com/2023/12/media-highlights-fugitive-hawala-dealer.html

3. https://ashokmittalhotelplaza.blogspot.com/2023/12/media-highlights-fugitive-hawala-dealer.html

4.https://ashokmittalhotelplaza.blogspot.com/2023/12/media-exposes-ashok-mittal-nandkishore.html