Income Tax authorities recently issued summons and a show-cause notice to IL&FS Rail Ltd. After a search operation, various incriminating documents and digital data were found and seized from the premises of IL&FS Rail Ltd in Gurgaon.
These essentially contained civil work expense bills raised by different companies.
A thorough investigation thereafter has revealed mala fide. The shareholding of IL&FS Transportation Networks and ENSO Infra Pvt Ltd has the shareholding of 83 per cent and 15 per cent respectively in IL&FS Rail Ltd (IRL). However, the shareholding pattern of Enso in 2009-10 was such that 99.8 per cent shares are owned by Enso. It is here that the plot gets convoluted. Thereafter the shares of the company are taken over by Ashish Begwani, a director in the company.
IT Department notes in its report that Begwani is a well-known facilitator of accommodation entries as well as hawala services, which has been established during a search conducted on him and his group companies on 22.10.2016 by Unit 8, Delhi. The shareholding pattern of Enso Infra in FY 2011-12 and FY 2012-13 was Ashish Begwani 49.9 per cent and Campbell Advertising 49.9 per cent.
During the post-search investigation on Begwani, it was found that Campbell Advertising and Kaane Visionary Projects were shell companies controlled by Begwani which were not engaged in any active business.
The source of funding to these two companies remained unexplained. Pioneer Dealtrade Pvt Ltd also belongs to Begwani, another shellco while Kuber Group had taken accommodation entries through unexplained share application money, share premium and unsecured loan from others. The source of funds could not be explained by Kuber Group either.
Enso Infra raised large amount of funds from Campbell Advertising, Enso Pvt Ltd, Kuber Grains & Spices, Kaane Visionary Projects, Ashish Begwani HUF and Pioneer Dealtrade. Significantly, in terms of application of funds by Enso Infra, almost the entire fund has been invested in unquoted shares of IL&FS Rail Ltd.
It then emerges that Enso raised funds through bogus unsecured loans, LTCG and share capital/share premium through various entities controlled by Begwani such as the above-mentioned names. Enso Infra has major investments in ILFS Rail, Rapid Metro Gurgaon South and Rapid Metro Gurgaon.