The Indian Income Tax Authorities have simultaneously raided the offices of Jai Corp Ltd and its Chairman – Anand Jain’s residence as well. Various press reports indicate that the raid was conducted due to Large amounts of Land Dealings which are shady [Ofcourse Real Estate in India is nothing but a parallel black money economy]
The Income Tax officials have recovered bills which, according to some sources, are bogus and created for the purpose of generating cash for making payments on land deals. The purpose of the investigation is to trace the origin of what I-T officials describe as the cash flow. Jai Corp investors feel cheated by such promoters in the driving seat where money is laundered openly and there is absolutely no corporate governance.
We had written in Jan-09 about the price rigging scam in Jai Corp Stock and don’t you think that SEBI and the Govt lack the will to investigate this matter.