The Economic Offences Wing (EOW) of the Mumbai Police arrested three persons for allegedly cheating the government by not paying taxes to the tune of crores. The EOW raided the Malad office of Om investments, and found three persons doing “share trading” on computers. Two were talking on phones, getting info and writing it down on a paper, said officials.
The three arrested are Vinod Shah, Arun Singh and Pradeep Chavan. The officials said Vinod Shah was the owner of Om Investments, the sub-broker of Angel Broking Limited. Their interrogation revealed that the three were working as share trading operators. They were not trading on any stock exchanges but writing down details through the day, while the investors were told that investment was being done, said the officials. However, they added, this was not seen on any stock exchange.
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Since no contract notice is given and all transactions are done stealthily, no tax is paid to the government on this transaction. On being questioned, Shah said they had a daily turnover of Rs 5 crores. The company has an annual turnover of nearly Rs 2000-3000 crore.
A case of cheating and sections of the Securities Contract Act was registered and the three.