What kicked off the investigation and the subsequent action in the ITC case?
The Audit Committee Report by Lovelock & Lewes gave us an insight into the unfair practices being carried out in ITC. We also received information through banking channels. Other channels like hawala were also being investigated. Our investigations were on as a matter of routine, but the audit report was the last straw. This is possibly the biggest corporate fraud committed in recent times. What is the main charge? We have documentary evidence indicating FERA violations worth over $100 million (over Rs 350 crore). We have sufficient evidence to show that ITC had parked fictitious profits into its books by manipulating its financial transactions abroad which were being brought back to India. The funds had been retained all over the world in various bank accounts. The recorded statements of the four officers arrested initially indicate that a large part of the funds (including that of the Bukhara deal) was retained abroad and transferred through a Swiss numbered account to the Chitalias
