FinMin detects Rs 2,280 cr black money routed through PPP

About Rs 2,280 crore (Rs 22.80 billion) unaccounted income being allegedly routed through Private Placement Programme (PPP) has been detected by economic intelligence sleuths.

The Central Economic Intelligence Bureau (CEIB), the nodal agency in the Finance Ministry for gathering and disseminating intelligence related to financial crimes, has shared with various enforcement agencies information on the new modus operandi of routing black money through PPP.

The PPP mode, which has emerged as a new method for converting black money into white, involves offering of securities to select individuals or groups, up to 50 in number, contrary to Initial Public Offers (IPOs) offered by listed firms.

Acting on the intelligence, the Directorate General of Income Tax (Intelligence and Criminal Investigations) under the Central Board of Direct Taxes (CBDT) had forwarded three appraisal reports to the CEIB. The total unaccounted income in these reports have come out to about Rs 2,280 crore, official sources said.

These appraisal reports have also been shared with Enforcement Directorate (ED) to probe any violation of foreign exchange laws, they said.

The CEIB is awaiting few more appraisal reports on the investigations carried out by the DGIT so far following the inputs by the central intelligence agency, the sources said.

The Financial Intelligence Unit (FIU), an agency tasked with collecting, analysing and disseminating information related to dubious financial transactions, has also detected 881 suspicious transaction reports (STRs) allegedly carrying black money being circulated through PPP.

The STRs are being scrutinised for further investigation, the sources said. An STR is a transaction of Rs 10 lakh and above believed to be proceeds of crimes including that from black money.

Both the CBDT and ED in coordination with other agencies are carrying out investigation to check the misuse of PPP to convert black money into white, the sources said.

Financial intelligence agencies official suspect involvement of organised laundering gangs involved in routing black money through PPP mode. The Finance Ministry has sought expeditious probe on intelligence related to PPP from various enforcement agencies involved in the matter, the sources added.