Alleged scamster Pramod Agrawal reached the income-tax office with a handful of investors demanding that the department should release the documents of properties seized from his offices during the raid conducted in February 2009. He claims that it will help him in selling off the land so as to repay the investors.
Chartered accountant Agrawal ran investment firm Mahadeo Developers, promising to double the depositors' money in two and half year by parking their funds in real estate. This attracted deposits from thousands of individuals, mainly from the lower and middle income group. Suspecting a huge evasion of tax, the IT department raided his business. It coincided with the time when Agrawal started to default.
Agrawal argued that since his firm dealt in land, the papers amounted to be the stock-in-trade. Norms say that they cannot be seized during an income tax raid. "The seizure of documents has brought my business to a standstill. The department says that I can take a photocopy of the papers, but it would cost almost Rs 20,000 or so, an amount which can be rather used to pay back the investors to meet their daily expenses," said Agrawal.
The total due to investors has been calculated at Rs 50 crore, he added. The market value of the land Agrawal has "is Rs 60 crore". In an earlier interview with TOI, he had pegged the land value at Rs 80-90 crore.
He also charged an IT officer, who he called upon on Friday, of behaving harshly towards the investors. According to investor Nirmala Revatkar, the IT officer rudely asked, "Did you ask me before investing in this firm."
Tax consultants say that Agrawal should go for a legal recourse to prove that the papers were stock-in-trade and could not be seized. "Oral requests may be of a little help," they say.
Agrawal also demanded that he should be allowed to sit in the income tax office and run the affairs as it would be a safer place given the threat he face from angry depositors.
Chartered accountant Agrawal ran investment firm Mahadeo Developers, promising to double the depositors' money in two and half year by parking their funds in real estate. This attracted deposits from thousands of individuals, mainly from the lower and middle income group. Suspecting a huge evasion of tax, the IT department raided his business. It coincided with the time when Agrawal started to default.
Agrawal argued that since his firm dealt in land, the papers amounted to be the stock-in-trade. Norms say that they cannot be seized during an income tax raid. "The seizure of documents has brought my business to a standstill. The department says that I can take a photocopy of the papers, but it would cost almost Rs 20,000 or so, an amount which can be rather used to pay back the investors to meet their daily expenses," said Agrawal.
The total due to investors has been calculated at Rs 50 crore, he added. The market value of the land Agrawal has "is Rs 60 crore". In an earlier interview with TOI, he had pegged the land value at Rs 80-90 crore.
He also charged an IT officer, who he called upon on Friday, of behaving harshly towards the investors. According to investor Nirmala Revatkar, the IT officer rudely asked, "Did you ask me before investing in this firm."
Tax consultants say that Agrawal should go for a legal recourse to prove that the papers were stock-in-trade and could not be seized. "Oral requests may be of a little help," they say.
Agrawal also demanded that he should be allowed to sit in the income tax office and run the affairs as it would be a safer place given the threat he face from angry depositors.
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