“This attempt to project the mastermind of the scam as a victim of conspiracy by his employees and borrowers is an outcome of the pressure of vested interests in the corridors of power who have been benefited by the NSEL-MCX-FTIL triangular operations,” the PIL stated.
During the market stint of MCX, NSEL and FTIL, Shah launched many international platforms (bourses and trading companies) in tax-havens, namely Mauritius, Botswana in Africa, Singapore and in Middle-east nations, such as Dubai and Bahrain, to take advantage of the Double Taxation Avoidance Agreement (DTAA) signed by India as a member of a consortium of multiple nations, the PIL alleged.
These platforms were in the form of bourses facilitating trading in futures for various commodities. The revenue from these bourses was transferred to India without inviting any tax liability and also revenue from Indian entities was siphoned off to these countries in the guise of payment schedules to be honoured, the PIL further alleged.
In reality, there were no payment schedules honoured and it was a financial market gimmick to avoid paying taxes in India, the PIL contended.
It further argued that Mumbai EOW has not yet sent any team abroad for interacting with the market regulators in these nations as well as the tax authorities. Letters rogatory (to seek information from foreign countries about Shah's entities) also were not dispatched for a long time.
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