Income Tax probe reveals Ashok Mittal of Royal Plaza and Nand Kishore Chaturvedi, a fugitive hawala dealer are partners in multiple companies in India and Foreign countries.

  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.)

Income Tax probe reveals Ashok Mittal of Royal Plaza and Nand Kishore Chaturvedi, a fugitive hawala dealer are business partners in multiple companies in India and Foreign countries.

By Sujit Thakur

The income tax probe has nailed Ashok Mittal's Web of Lies as it uncovers his partnership with fugitive hawala dealer Nand Kishore Chaturvedi and their blackmoney investments made through round-tripping in the Hotel Royal Plaza in 2003.  https://www.indiatoday.in/india/story/income-tax-dept-raids-hawala-operator-nandkishore-chaturvedi-entities-several-states-2390183-2023-06-08

According to the income tax affidavit filed in the Delhi High Court recently, it's probe till now has revealed that Ashok Mittal's has unreported foreign assets and income through the following entities: Bamberg Management Inc., British Virgin Islands; Hillcrest Reality SDN BHD Malaysia; Snowdonia Overseas Ltd., British Virgin Islands; Super Gold Trading DMCC Dubai; Danube Trading F.Z.C. Dubai; North West Trading FZE Dubai; Goldmark Enterprises Limited Marritius; monies totaling INR 50 crore being round-tripped and their source identity being concealed. The material evidence that was found during the search and the statements that were gathered show that the petitioner, Ashok Mittal, is involved in moving INR 50 crore (USD 6 million) from his son's Swiss Citi Bank accounts to his own shell companies in Malaysia (via Cardiff Ltd. and Hillcrest Realty SDN BHD), which he owns and that pretend to be loans from another British Virgin Island (BVI), Bamberg Management Inc. The latter was incorporated six months after the funds were first remitted, and those shell companies were even dissolved for this reason. 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

Actually, by backdating the redrawing of books for the years 2003–2008, the monies were transferred as loans from the BVI entity Bamberg in 2009. Ten years after the monies were moved, in June 2013, Mr. Harish Premjee, a dummy person, was employed to assert that he had a beneficial interest in the BVI entity Bamberg, further complicating the arrangement. Subsequently, the aforementioned sum of INR 50 crore was transferred to the Indian company of the petitioner, Hotel Queen Road Pvt. Ltd. (Hotel Royal Plaza), through the purchase of preference shares made possible by Hillcrest Realty, a Malaysian company that holds the largest stake in the company. Following that, the Indian business paid dividends to Hillcrest Realty in Malaysia. Hillcrest Realty subsequently distributed the dividend cash to Bamberg's shareholders rather than to its parent BVI Company, Bamberg. The BVI company Bamberg's two shareholders, Mr. Pradeep Chandra and Mr. Ramesh Kumar Rajpal, are close friends of the petitioner, Ashok Mittal, and were involved in his business dealings in Dubai. Both Mr. Pradeep Chandra and Mr. Ramesh Kumar Rajpal provided unsigned wills in which they vested all advantages to the petitioner (Ashok Mittal) from Bamberg Management Inc. (a BVI firm) and Mis Danube Trading FZC (a Dubai business). When these two people became shareholders of the BVI entity in 2017, all of these events occurred at once. Around the same time, the Indian company distributed dividends to the Malaysian entity, which then transferred the dividend to the personal accounts of these people (the BVI entity's shareholders). Additionally, around the same time, these people drafted the unsigned wills that assigned all of the benefits from the BVI entity to the petitioner (Ashok Miital). Therefore, the purpose of the entire arrangement is to conceal the origin of the INR 50 crore in funds that the petitioner owns and has sent back to India through fictitious foreign entities. https://www.scribd.com/document/694877440/DOC-20231212-WA0014

The Department has documents as to the civil suit filed by the petitioner (Ashok Mittal) in Malaysia against his brother Ram Parshottam Mittal and the entity (the services of which were taken for incorporating shell companies), claiming that the entire INR 50 crore in Malaysia was arranged by the petitioner himself. The Department has documentary proof from Postcullis Trustnet (which assisted Petitioner, Ashok Mittal, in incorporating and managing shell companies in Malaysia) that Petitioner's Malaysian entity, Hillcrest Realty, has given power of attorney to Mr. Nand Kishore Chaturvedi, who is a Hawala operator and is currently a wanted fugitive by the Enforcement Directorate and the Respondent (income tax) itself. The investigation of the respondent (income tax) under the Black Money Act is at a very crucial stage, and FT and TR references have already been made to both Malaysian and BVI authorities. 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

Channelling unaccounted income of approx. INR 200 crore earned from Indian companies to Mauritian entity Goldmark Enterprises Limited.  https://economictimes.indiatimes.com/news/india/i-t-dept-raids-hotel-royal-plazas-chairman-for-stashing-rs-40-crore-abroad/articleshow/93074759.cms

The income tax affidavit also highlighted another of Ashok Mittal's fraudulent offshore investments. Ashok Mittal, the petitioner, is said to have made INR 200 crore in unreported income from his Indian businesses (M/s Mittal Ispat Ltd., M/s Sharda Casting Ltd., M/s Pondymetal, and Rolling Mills Pvt. Ltd.) by selling finished goods off the books for cash. He then took these goods out of India through Hawala operations and parked them at M/s Goldmark Enterprises Limited in Mauritius. The department has information that the POA (power of attorney) of the Mauritian company has been given to Mr. Nand Kishore Chaturvedi and his brother, Mr. Vivekanand Chaturvedi (associates and CAs of the petitioner). It is reiterated that Mr. Nand Kishore Chaturvedi is a Hawala operator and is currently a wanted fugitive in India by the Enforcement Directorate and the respondent (income tax) itself. M/s Pondymetal has the residential address of the petitioner (Ashok Mittal) as its registered address. The majority of the shares, i.e., 90% of the shareholding in this company, is with Goldmark Enterprises Ltd. The Department has obtained a statement on the oath of Mr. Vivekanand Chaturvedi (auditor of Petitioner, Ashok Mittal, and his companies for 15 years and also the POA holder for Mis Goldmark in India), who has stated that Petitioner (Ashok Mittal) is the owner of the said Mauritian entity. FT and TR references have been sent to the Mauritian authorities, and it is very crucial at this stage that the petitioner (Ashok Mittal) be prevented from travelling abroad. Petitioner (Ashok Mittal) is the owner of the BVI entity Snowdonia Overseas Ltd., which was flagged in the Panama Paper Leaks, and the owner of three other entities in Dubai during the period AY 2015-16 to AY 2018-19. The petitioner (Ashok Mittal) incorrectly claims to be a non-resident in India. The petitioner (Ashok Mittal) was the owner of the following entities in Dubai: a. Super Gold Trading DMCC; b. North-West Trading FZE; c. Danube Trading FZC. The petitioner has stated in his statement before the respondent (income tax) that he transferred 75,000 USD to his BVI entity, Snowdonia Overseas Ltd. All the funds from Snowdonia were later transferred to Super Gold Trading. The Department has seized documents during the search that reveal that all the funds of Snowdonia were transferred to Super Gold Trading, and the net worth of Super Gold Trading thereafter was found to be USD 10 million (approximately INR 76.4 crore), indicating that the petitioner (Ashok Mittal) had business income to this extent through the BVI entity Snowdonia. The Department has seized documents that indicate net profits of approximately INR 128 crore during the said period from the Dubai entities. The assessee has not provided the financials of these companies, citing the fact that maintaining books of accounts is not mandated as per the laws in Dubai. So, the Department sent FT&TR references to the DAE and BVI authorities. The investigation is now at a very important stage to find out how much foreign income and assets the petitioner has that have not been reported from these entities in Dubai.

Note: For more details, please 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