Fraud News

Enforcement Directorate(ED) has revealed a Rs.225-crore money laundering case against AK Mishra, former chief engineer with UP State Industrial Development Corporation. ED has attached a 6,796 sq ft bungalow worth around Rs.100-150 crore in Lutyen's Delhi's tony Prithviraj Road belonging to the engineer. Mishra laundered his ill-gotten money through 66 fictitious bank accounts and a maze of 14 shell companies.

Finance Ministry has detected 569 cases of service tax evasion during Jan-July this year, accounting to around Rs 600 crore. With there being over 100 services which entails service tax, the Ministry is implementing a first-of-its-kind Voluntary Compliance Encouragement Scheme for service tax defaulters to pay due without any penalty or late payment charges on or before Dec 31, 2013.

A new racket has surfaced which guarantees the commuter ticketless travel for a monthly premium of about Rs 100. The racket offers an insurance scheme that pays the charges on a commuter's behalf if he/she is nabbed in any inspection by the Railway authorities or the police. This racket is mostly prevalent among office-goers and students.

Former Union law minister and senior Supreme Court lawyer Ram Jethmalani (91) Friday complained to the Chennai city police that a real estate dealer has cheated him of Rs 7 crore. Police sources said the broker had collected the money from Jethmalani under the pretext of paying an advance to a land owner, but never got the land registered.