I-T unleashes searches on Ispat Industries
01 Dec 2010
The directorate general of income tax intelligence on Tuesday conducted a nationwide search operation at the premises of steel-maker Ispat Industries Ltd and its promoters, Pramod and Vinod Mittal in connection with alleged tax evasion and money laundering.
The searches were conducted at company's offices in Mumbai, Nagpur, Delhi and Kolkata and at the residences of the company's managing director Vinod Mittal and a few key management personnel, officials in the income tax department said.
Vinod and Pramod Mittal are brothers of steel tycoon Lakshmi Nivas Mittal, who controls ArcelorMittal, but their companies are independent.
While Vinod Mittal is based in India, younger brother Pramod operates out of London and is the chief executive officer of Global Steel Holdings, registered in the tax haven of the Isle of Man, which is at the centre of investigation.
The income-tax officials also conducted surveys in nearly 20 destinations of the company's dealers across the country. Cities covered in the I-T raids included Bangalore, Mumbai, New Delhi, Kolkata, Ranchi, Balasore, Indore and Nagpur. Efforts are being made to get details from Isle of Man on Global Steel Holdings and letter of credits issued to Indian entities.
The Mittals have mining and steel interests spread across continents. But Lakshmi Mittal was not a target of raids.
