Besides the SFO indictment of the Adarsh Credit Co-op Society, the Income Tax department finds out that Adarsh Credit Co-operative Society has shown Rs 25.62 cr as investments in gold and silver assets and stock of trading gold amounting to Rs 25.62 crore whereas on physical verification only Rs. 8.18 crore gold and silver was found.
“Thus, the physical stock of gold and silver was found short of Rs. 17.22 crore. It is suspected that the management of the society might have siphoned off the gold and silver to the tune of Rs. 17.44 crore”, the IT dept says.
It also noted that 125 private limited companies floated by the Modis at different locations have no business activity at their given addresses and the Modi Group failed to produce their books of account during the course of search.
An amount of Rs. 9238 crore (almost entire deposit amount) is given as loan to group companies and associate concerns without adequate securities. Neither the principal amount nor the interest has been received back from most of these companies during the last several years and no action has been initiated by the society against the companies to recover the outstanding balance.
It is, therefore, prima facie seen that Modi and his family members have floated all these shell companies to siphon off the funds of the credit society running into several thousand crores, the Income Tax Dept letter reads.
It further says that there is no established procedure of sanctioning loans to the members. Total deposits collected by the society as on date Rs, 9,474 crores. The loans and advances (including outstanding interest) amounting to Rs 12,433 crores are outstanding. It is also seen that out of the said loans an amount of Rs. 12,406 crores has been sanctioned to 180 companies and individuals out of which 122 companies are completely controlled and managed by Mukesh Modi family and his relatives.
It is also found that the society has an amount of Rs. 9238 crores as bad loan or non- 80uts ?gipg principal and interest for year after years. The security or mortgage of assets against such a huge loan is approximately Rs. 612 crores. Thus, it is clear that sanction of this loan amount of Rs. 9238 crores by the society is not at all safe and the interest of the common depositors has been put at risk.
It is further observed that commission paid by the society of an amount of Rs. 59.36 crore, Rs. 194.69 crore and Rs. 406.68 crore, for Financial Year 2015-16, 2016-17 and 2017-18 respectively as commission for advisory services to one single firm M/s Mahaveer Consultancy wherein wife and son-in-law of Mukesh Modi are partners. On further verification, it is found that the firm has a very small establishment (one small room having 4-5 chairs) at Gurugram and no books of account have been found there.
One of the employees of the firm in his statement on oath stated that the firm is engaged in the business of only caster seed trading and he is not aware of advisory activities of the firm. Shri Vaibhav Lokha, one of the partners of M/s Mahaveer Consultancy in his statement on oath mentioned that the firm is providing advisory services to the society but no books of account have been found in his given address. Similar commission of Rs. 760 crores during Financial year 2017-18 has been paid to the so-called advisors major portion of which is likely to be bogus. Thus, it is clear that the funds of the society are being siphoned off in the garb of payments made for advisory services to the family members of Mukesh Modi.
Certain depositors of the society in their statement have stated that the money deposited by them was not reflected in their pass book. When they raised the issue with the society they have been told that their money will be returned in the form of loan without any interest. It is clear that books of accounts are being manipulated and deposits are being shown as loans. However, none of them have got their full amount even in the form of loan.