Bharat Shah’s arrest — Taxmen bring good news for police

The Mumbai police have produced recordings of telephone conversations between Rizvi, the arrested producer of Chori Chori Chupke Chupke, and Chhota Shakeel in court. The tapes have Rizvi telling Shakeel that Bharat Shah had sent $ 50,000 to Bhatija in Dubai. Rizvi gives Bhatija’s telephone number as 2210088 in those tapes and tells Shakeel that the password for collecting the money is “five”. During interrogation in custody, Rizvi has confirmed the deal and the role and telephone number of Bhatija. The amount was transferred by hawala.

It is to this telephone number, the IT sleuths have found, that the 54 calls were made from Shah’s firm in Mumbai within the space of a month. And more stunningly, the calls continued even after it was public knowledge that the police were hot on the Bollywood-Shakeel nexus.

But that’s not all. The IT sleuths have discovered from papers that were recovered from a motor garage that Shah had acquired interest in a property in Walkeshwar. They are seeking details of what his interest is and how much consideration has been paid for the same.

The property,, Bombay Garage, at Walkeshwar, itself has an interesting history.

The seized documents apparently show that Bombay Garage was in the list of properties sought to be confiscated by the government along with other properties belonging to Dawood Ibrahim after he was named first accused in the serial blasts case of 1993.

Dawood’s properties were sought to be confiscated under the Smugglers and Foreign Exchange Manipulators’ (Forfeiture of Property) Act, 1976 (SAFEM-(FOP)-A). The property, a sprawling building housing various offices, and workshops which the firm of F M Chinoy and Co was occupying, was finally released by the Competent Authority for SAFEMA in August 1999. F M Chinoy and Co proved to the Competent Authority’s (CA) satisfaction that the property was legally held by them. The CA has noted that neither Dawood nor his family members were ever directors in F M Chinoy.

The I-T department has also found correspondence about the SAFEMA proceedings between Bharat Shah and the lawyer appearing for F M Chinoy and Co.

ENS learns that Shah was appointed director in the company in April 1998.

And, as coincidences happen, the lawyer with whom Shah was in correspondence about Bombay Garage happens to be Shiraz Rahimtoolah of Apex Juris, now appearing for Shah in the MCOCA proceedings.

One more important piece of infromation the I-T is looking into is a loan of USD 11,50,000 received by M/s Mega Bollywood from a Mauritius company, M/s Mega TV Production and Finance Ltd, registered very recently. Both firms belong to Bharat Shah’s group. The documents show that Mega Bollywood was paying an interest rate two per cent above LIBOR (London interbank offered rate), to Mega TV. I-T is inquiring into the business of the Mauritian company, its sources and mode of business.

Another property in Walkeshwar which is now under reconstruction is also suspected to be Shah’s. Papers seized by the I-T show the property, Jekison Niwas, Walkeshwar, was acquired by Shah’s firm, M/s Layer Exports Pvt Ltd. The department is looking at the identity of the tenants which are suspectedly false, the tenancies suspectedly created only with a view to showing a depressed purchase price.

What is likely to take up the time and attention of the I-T most in the next few weeks, however, is the maze of a large nunmber of companies/concerns of the Bharat Shah group which are prima facie benami. Firms registered in the name of employees and friends abound, says sources.

Papers related to one such firm, Niru Diamonds, are already in the possession of the I-T department. The partners of the firm are one Tarun C Shah and his family. Tarun Shah happens to be the employee of B Vijaykumar and Company, Bharat Shah’s flagship diamond firm and draws a meagre salary of Rs 8,000 per month. And though Niru Diamonds is filing nil returns, there is evidence that huge sums of export proceeds have been withdrawn by the partners.