Illegal funds abroad: ED initiates action

The Enforcement Directorate ED is learnt to have issued notices under the Foreign Exchange Management Act FEMA to individuals and companies whose names have figured on LGT Bank accounts for stashing illegal funds. The Central Board of Direct Taxes has referred 17 cases to the ED in this connection as the Income Tax department has begun prosecution in these cases.

The ED has initiated action against the account holders in Mumbai,Delhi and other cities. It has also recorded statements in certain cases.

In some cases,the individuals have not turned up even after being served summons. The ED has asked the I-T to provide additional documents in such cases, said an official.