The Income Tax Department's Mumbai unit has served notices to the members of RIL Chairman Mukesh Ambani's family, including his wife Nita Ambani and their three children, reported The Indian Express. The notices were served on March 28 this year, under the 2015 Black Money Act, for their "undisclosed foreign income and assets". Meanwhile, Reliance Industries has denied the report, saying it didn't receive any such notice from the I-T Department. "We deny having received any such notices from the income tax department," the company said in a statement.
As per the report, the probe pertains to a larger I-T inquiry, which started in 2011, under which around 700 India individuals and entities are being investigated for holding accounts in HSBC Bank in Geneva. The number reportedly went up to 1,195 after the 'Swiss Leaks' in February 2015.
As per The Indian Express report, around 14 accounts in HSBC bank in Geneva had a total balance of $601 million (over Rs 4,200 crore). These accounts, held by offshore entities in tax havens, were allegedly connected via a complex web of associates and offshore companies to the Reliance Group.
The Income Tax notice issued on March 28, 2019, says Mukesh Ambani's family members are the "ultimate beneficiaries" of one of these 14 entities, the Capital Investment Trust.
While the Reliance Group has denied receiving the I-T notices, the daily said they were issued after protracted "back and forth" between tax authorities in Mumbai and the Central Board of Direct Taxes.
The notices include details regarding several entities including Capital Investment Trust, Thames Global Limited, Infrastructure Company limited, Antalis Management Limited, Infrastructure Company Limited and Harinarayan Enterprises.
As per the I-T notice, Capital Investment Trust was initially formed on November 5, 2003, with total funding of $1,000. It further owned Thames Global Limited, which owned two more companies -- Infrastructure Company and Antalis Management -- in the British Virgin Islands.
The tax authority says the Ambanis has not revealed their holdings in Capital Investment Trust. They also didn't disclose the details regarding Capital Investment Trust's "underlying company", Infrastructure Company Limited, which is based in Cayman Island. They were also allegedly the beneficiaries of this company. Besides, they are also beneficiaries of Mumbai-based Harinarayan Enterprises. The notice had asked the Ambani family members to show evidence, accounts or documents in their support. The first hearing in the case was April 12 this year.
Edited by Manoj Sharma