Celebrities, netas used cash at Nirav Modi stores, raid revealed

NEW DELHI: Last year, when the tax department raided companies linked to Nirav Modi and Mehul Choksi -- high profile jewellers now on the run -- it was looking for concrete information on a possible tax dodge by Modi, often seen rubbing shoulders with Bollywood and Hollywood celebrities.

What officials stumbled on was a virtual list of who's who from India's glamour industry and some prominent personalities who were making cash purchases from his stores. There were also politicians about whom tax officials picked up useful information including a lawyer-MP, a source told TOI.

The post-demonetisation swoop came amid the government's crackdown on sectors where cash was regularly used to buy jewellery and high value goods. As the investigations revealed, there was indeed evidence of widespread use of cash to mask actual amounts paid. "A part of the payment was made by cards or cheque and a large amount was in cash," said an official. Sources said it is common practice for many businessmen to pay celebrities by way of "gifts", which need to be added to their income.


While the focus is on Modi and his companies, in future, the information is expected to come handy as the income tax department builds a strong dossier before conducting searches or initiating action against tax evaders revealed in the Modi raids.

The information has seen income tax authorities swiftly move to follow up raids conducted across at least 50 premises. The crackdown is part of action initiated against several gems and jewellery firms, which were suspected to have profited after demonetisation was announced on November 8 and undertook large scale cash transactions.