The Corporate Affairs Ministry and Income Tax (I-T) department have initiated a probe into the funding and investments made by various firms in Purti Power and Sugar Ltd (PPSL) - a company owned by BJP president Nitin Gadkari.
Corporate Affairs Minister Veerappa Moily on Tuesday ordered probe into the alleged ambiguity in funding of PPSL and I-T department also announced investigation on the 18 companies that invested in Gadkari's firms.
The Corporate Affairs Ministry on Thursday announced that Registrar of Companies in Mumbai and Nagpur, where PPSL has been registered, will look into the initial investigation to find out if any illegal funding or falsifications and hiding of facts were done by investor companies.
If the Registrar finds any evidence against the firms, the inquiry will be entrusted to the Corporate Affairs Ministry's special frauds unit.
According to recent reports, I-T departments based in Mumbai and Pune have started inquiry into the matter, focusing on the 18 companies that have reportedly invested in PPSL.
"We will trace the source the funds of the companies including the 18 companies that invested in Purti," IBN Live quoted a Top I-T official as saying.
The final report by I-T departments will be reportedly submitted to Central Board of direct taxes.
As per the reports of NDTV, the names of shell companies that were enlisted in the investment record either did not exist or were not at the address they were mentioned. The report also stated that many shareholders of PPSL were people who came under Gadkari's payroll including his driver, astrologer and an accountant.