IT searches continue at Xerox ModiCorp

NEW DELHI JULY 26. The income-tax department continued its searches at three premises of Xerox ModiCorp here today and scrutinised 85 bank accounts for alleged money laundering by the corporate house.

The searches came even as the B K Modi group has announced the appointment of accounting firm Ernst & Young to look into the books of XMC in addition to the PricewaterhouseCoopers' (PWC) examination earlier.

Officials said the three premises of the corporate house were searched by the income-tax department and accounts of last six years were being scrutinised by it to probe the bribery revelations made by Xerox Corporation to the U.S. Securities and Exchange Commission (SEC) with regard to the Indian subsidiary. Asked about the charges of money laundering by the corporate house, the officials said nearly 85 bank accounts of the firm were being scrutinised.

They said it was established that the corporate house had paid amounts in crores of rupees by cheques to some shell companies and received cash from them after the deduction of "Commission'' or "Trading Charges''.

They said so far seven shell companies had come to the notice of income-tax authorities out of which two were searched during the July 17 raids while five others were not found on the addresses mentioned.

The officials said three of the nine bank lockers, seized during the earlier raids, were opened today but nothing significant had been recovered from them.


Recommended for you