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The modus operandi primarily used are trade-based money laundering, real estate and construction-based money laundering, film-based money laundering, avoidance of double tax treaty and sham loans, Mr. Hiremath said.
The samudaya has detected the existence of front entities which have been created to route ill-gotten money and show it as genuine. However, the legitimacy of the wealth created needs to be established through forensic accounting and auditing. Besides, the assets are spread across multiple families so that the ill-gotten money could not be traced. Application of the Prevention of Corruption Act in letter and spirit would bring the truth out. The samudaya would provide more information in this matter in the days to come, Mr. Hiremath said.
Mr. Hiremath said that Mr. Siddharth had recently returned 64 acres of forest land in Chikkamagaluru district which were in his illegal possession for nearly 20 years. But the Forest Department has not yet filed an FIR against him.
Whatever profit he earned through illegal possession of forest land needs to be investigated. Moreover, 54 acres of revenue land that Mr. Siddharth had encroached upon was still in his possession, Mr. Hiremath said.
HMT land
Suspecting money laundering in the illegal sale of land belonging to Hindustan Machine Tools (HMT) Limited to private real estate firms in Bengaluru, the samudaya, which has sought a CBI inquiry into the issue, has released copies of two sale deeds which it terms illegal.
Mr. Hiremath said that there were serious questions about those involved in the “benami” transactions involving HMT land. Stating that Dollars Construction and Engineering Limited bought over five acres for Rs. 7.21 crore in 2004 and Silverline Estates purchased 7.59 acres for Rs. 16.68 crore in 2005, these land parcels were sold at throwaway prices and a few individuals have benefited Rs. 3,000 crore though the transactions. “Income Tax authorities should have referred the matter to the Enforcement Directorate. However, efforts have not been made to get to the roots of the matter. Despite there being a complaint with the Lokayukta, nothing has been done to investigate the matter,” he added.
