Income Tax probe uncovers Rs 1.29 lakh crore overseas remittance network
The Income Tax Department identified a large cross-border money-transfer scheme involving thousands of entities that moved Rs 1.29 lakh crore abroad, prompting action against hundreds of firms.
A recent Income Tax Department investigation revealed a massive overseas remittance operation that channeled Rs 1.29 lakh crore through more than 6,000 newly-created entities. So far, enforcement actions have targeted 394 firms, and a wider net of companies and individuals is being examined. The majority of the outflows were directed to a handful of jurisdictions—Singapore, the UAE, Hong Kong, Mauritius and China—collectively receiving 72.3% of the total amount, with Singapore alone accounting for Rs 41,885 crore.
Senior officials said the inquiry is ongoing and that the full modus operandi will become clearer in the coming days. The surge in outflows raises concerns as the Reserve Bank of India continues to sell dollars to curb rupee volatility. Investigators are now probing the origins, purposes and beneficiaries of the transfers.
Why it matters
Large-scale capital outflows can strain India's foreign-exchange reserves and affect rupee stability.
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