17 May,2011 06:19 AM IST | | Akela
The Badri Charitable Trust, manned by seven brothers, is being investigated by the Income Tax department for conducting unlawful profit-making transactions and making false declarations about its financial status
The Badri Charitable Trust, formed by seven brothers, has come under the Income Tax (IT) department's scanner for allegedly conducting numerous profit making transactions under the cover of its trust status. Initial investigations by IT officials have indicated that its proprietors sold some of the trust's assets, including land, after they dishonestly declared them loss-making liabilities. The Kandivli-based trust also created a counterfeit company in order to conduct illegal transactions with it, raking in profits worth crores in the process. The IT department has estimated the trust's net worth at Rs 2,000 crore.
No trust:u00a0One of the properties that was developed by the trust in
Kandivli Pics/Sayed Sameer Abedi
On March 24, 2011 the deputy director, Investigation, wrote a letter to the IT department, urging it to investigate the trust's operations. MiD DAY has obtained a copy of this document. At his behest, officials from the department searched the trust premises last week. "During our inspection we came across documents, which made it amply clear that the trust had turned into a builder, which was raking in big moolah. Estimates show that the current worth of the trust is Rs 2,000 crore," said an IT officer, on condition of anonymity.
The matter surfaced when 70-year-old Amirali S Bhavnagarwala, a resident of Kandivli, lodged several complaints against the trust with the IT and charity commissions. "The trustees deceived me. So I decided to expose them. I complained to several authorities including the IT department," he said.
Under investigation
The trustees have their private imitation jewellery businesses in Mumbai and Gujarat. IT officials are investigating several transactions for land made by members of the trust.u00a0In 1995, the trust bought a plot of land in Kandivli (West) from a trust, paying Rs 11.5 crore. But the agreement showed that the transacted amount was a relatively meagre Rs 3.5 crore. The trust constructed a 10-storey tower on the plot in 1997, with 40 flats and 8 shops. Investigations have revealed that the flats were sold at Rs 15 lakh each, though the papers showed that the transactions were worth Rs 5 lakh each.
In 1998, the trust constructed a seven-storey tower called Fakri, with 56 flats and 18 shops distributed over two wings. The price tag of each flat was Rs 15 lakh, but the deeds showed it to be Rs 5 lakh. The trust constructed a mosque worth Rs 14 crore between 1998 and 2000. Also under investigation is the seven-storey tower called Badri, constructed by the trust. The towers have 118 flats and 22 commercial shops distributed over three wings and trustees themselves have been occupants in 15 such flats. The trustees also formed a new firm named SMB, under the banner of which they constructed a 14-storey tower with three wings, with spacious and luxurious apartments. While the flats were sold at the rate of Rs 8,000 per sq ft, papers show that they were given away for the paltry sum of Rs 2,700.u00a0
Allegations have also been levelled that the trust wrote a letter to the Charity Commission, informing it that it was running at a loss of Rs 2 crore. The members thereafter asked for permission to sell off some its assets to recover the loss, which was granted by the commission. The trust thereafter sold a plot of land worth Rs 1.7 crore to its own fake front, SMB Company. Having declared their losses, the trustees bought a plot of land in Borivli worth Rs 100 crore. IT officials suspect that the project may have reaped profits worth Rs 1,000 crore. Investigating authorities have also revealed that the trustees have constructed a seven-storey tower in Jamnagar, Gujarat, in addition to inaugurating gold and silver refineries in Jamnagar, Gujarat.
Band of brothers
The Badri Charitable Trust was formed in the year 1995. The trust's office is in Vora colony, MG Road, Kandivli (West). Hatim Bhai Mulla Tahir Bhai Soni is the chairman of the trust, while his six brothers are its other trustees.
The Other Side
MiD DAY contacted two of the trustees, Moiz T Soni and Mustafa T Soni, who were initially unwilling to comment on their operations, saying, "We will only speak to you if you come and meet us. After being urged to speak on the allegations, Moiz said, "I am aware of the IT department's investigations. But I haven't done anything unlawful. The complainant is trying to extort money. I am going to register a complaint against him."
Matters came to a head when this reporter received a call from Moiz, who gave him his partner Mohan Bhai's cell phone number at which to call in order to obtain details. When the call was made, this reporter was angrily abused in foul language, and threatened against publishing the report in the paper. The voice on the other end also threatened that complaints of blackmail would be lodged with the police against him.
Minutes later, a call was received by this reporter from an individual identifying himself as Inspector Markad of the Kandivli Police Station, and asked to report to the station immediately. "Come to the police station and settle the matter with Amit Soni. Why are you repeatedly calling Moiz," said the caller. We were thereafter instructed to refrain from reporting the matter.
