Multi-crore scam accused's accounts defreezed

Multi-crore scam accused's accounts defreezed

A special CBI court has allowed defreezing of the bank accounts of chole-bhature vendor Ashok Malhotra, an accused in the multi-crore land scam, and his family members for recovery of Rs 6.13 crore in tax arrears.

 Special CBI Judge A K Mendiratta allowed Income Tax department’s application for defreezing Malhotra’s and his family’s bank accounts, which were frozen by the CBI during investigation into the scam, to recover outstanding tax liability. “Accounts freezed by the investigating agency (CBI) are defreezed to the limited extent whereby the IT dept shall be at liberty to proceed in respect of the amount deposited in the said accounts in accordance with law under the provisions of IT Act,” the court said.
The IT department had moved the court seeking defreezing of the accounts for realisation of tax arrears as it said a tax demand of Rs 6,13,87,671 for the Assessment Years 2003-04, 2004-05 and 2005-06 has fallen due against accused Ashok Malhotra and his family members.
The court noted that the IT department had been constrained to approach the court since it was not in a position to recover the amount in accordance with the IT Act due to freezing orders of various accounts passed by investigating agency.
The CBI also submitted that “it has no objection if the amount lying in the accounts so frozen by CBI relating to accused Ashok Malhotra, his family members, other relatives and societies is forfeited on account of government dues.”

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