I-T dept issues prosecution notice to Anil Ambani for holding secret funds in 2 Swiss bank accounts
New Delhi, Aug 23: The income tax department has sought to prosecute Reliance Group Chairman Anil Ambani under the Black Money Act for allegedly evading Rs 420 crore in taxes on undisclosed funds worth more than Rs 814 crore held in two Swiss bank accounts.
The department has charged Ambani, 63, with "wilful" evasion, saying he "intentionally" did not disclose his foreign bank account details and financial interests to Indian tax authorities.
A show cause notice in this context was issued to Ambani early this month.
The department said he was liable to be prosecuted under Sections 50 and 51 of the Black Money (undisclosed foreign income and assets) Imposition of Tax Act of 2015 that stipulates a maximum punishment of 10 years imprisonment with a fine.
It has sought his response to the charges by August 31.
Ambani's office had not responded to a query sent on the matter till the time of this story being filed.
The businessman has been charged with evading tax, by way of holding undisclosed assets abroad, for the assessment years 2012-13 to 2019-20.
According to the notice, a copy of which was accessed by PTI, tax officials found that Ambani was an "economic contributor as well as beneficial owner" of a Bahamas-based entity called 'Diamond Trust' and another company called Northern Atlantic Trading Unlimited (NATU) which was incorporated in the British Virgin Islands (BVI).
In the case of the Bahamas trust, the department found it had a company called Dreamwork Holdings Inc. This firm was the owner of a Swiss bank account, which had a peak balance of USD 32,095,600 (USD 3.2 crore) as on December 31, 2007.
The notice said the trust got initial funding of USD 25,040,422 (USD 2.5 crore). The department alleged that the "source of funding" for this was from Ambani's "personal account". It found that Ambani gave his passport as the KYC document for the opening of this trust in 2006. The beneficiaries of this trust were his family members too.
The BVI company, incorporated in July 2010, has an account in Bank of Cyprus, Zurich. The department claimed Ambani was the "ultimate beneficial owner" of this company and the funds that it has.
The company is also alleged to have received USD 10 crore in 2012 from a Bahamas registered entity called PUSA, whose "settlor and beneficial owner" is stated to be Ambani, as per the department.
"From the evidence available, it is obvious that you are the economic contributor as well as beneficial owner of the foreign trust Diamond Trust, the bank account of underlying company Dreamworks Holding Inc, settlor and beneficial owner of NATU and PUSA. Therefore, the funds/assets available with the above entities belong to you," the department said.
The department alleged that Ambani "failed to disclose" these foreign assets in his income tax return (ITR) filings and hence contravened the provisions of the Black Money Act, brought by the Modi government soon after it was first elected to power in 2014. Tax officials said such "omission was not bona fide in nature and is intentional".
"Thus, you have wilfully attempted to evade tax, penalty or interest chargeable or imposable under this Act (Black Money) on the undisclosed foreign asset....since you have wilfully attempted to evade tax you are liable to be prosecuted under section 51 of the Black Money Act, 2015," the order said.
The total value of the undisclosed funds in the two accounts has been assessed by tax officials at Rs 8,14,27,95,784 (Rs 814 crore) and tax payable on this amount at Rs 4,20,29,04,040 (Rs 420 crore).
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Karnataka: GBA city corporation polls likely between June 14 and 24
Bengaluru (PTI): Karnataka State Election Commissioner G S Sangreshi on Friday said elections to the five city corporations under the GBA will be held anytime between June 14 and June 24.
He said the exact date for the polls will be announced after a week, asserting that the power to postpone the elections, as requested by GBA authorities, lies with the Supreme Court.
The Supreme Court had directed the Karnataka government and the State Election Commission to conduct Bengaluru local body elections by June 30.
On Friday, the SEC held a consultation meeting with the GBA Chief Commissioner and commissioners of the five city corporations regarding the election schedule, as per the provisions of the GBA Act.
“During the meeting, I informed GBA officials that only the election date has to be fixed, as all other measures and formalities for conducting the polls have already been completed,” Sangreshi said.
“They requested the Commission to consider factors such as rains, exams, census work, SIR, and manpower shortages while fixing the date and sought additional time,” he added.
Speaking to reporters after the meeting, he said, “I told them this meeting was not for seeking time. Elections to the five corporations under the GBA must be held before June 30, as directed by the Supreme Court, and a compliance report must be submitted to the court. I do not have the power to postpone the elections as requested.”
The Supreme Court has already given a “final opportunity,” and both the SEC and the government must comply with its directions, the State Election Commissioner said.
He asked GBA officials to suggest suitable dates between June 14 and June 24.
“While stating that they are ready for elections, the officials highlighted operational challenges, including manpower shortages. However, I have informed them that the elections will have to be held between June 14 and June 24. After a week, I will announce the final date,” he said.
Reiterating that he does not have the power to postpone the elections, Sangreshi said the authority rests with the Supreme Court, and elections must be conducted as scheduled.
“We have consulted the GBA as per the rules. It is up to them to suggest a date within the given window. If they need more time, they must approach the court. Our responsibility is to fix the date and complete the polls before June 30,” he said.
The matter regarding manpower and other concerns raised by GBA officials is already before the Supreme Court, and the State Election Commission has also filed a petition in this regard. The case is yet to be heard.
“Since the matter has not come up for hearing, the earlier order remains binding. Therefore, preparations are underway,” he added.
The tenure of the previous elected body under the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) ended on September 10, 2020, and since then, a government-appointed administrator has been managing its day-to-day affairs.
Bengaluru was divided into five municipal corporations—Central, East, West, North, and South—under the Greater Bengaluru Authority in September 2025, replacing the BBMP.
Sangreshi had earlier said that elections to the five corporations would be conducted using ballot papers instead of Electronic Voting Machines.
This follows the Congress government’s decision last September to recommend the use of ballot papers in all future panchayat and urban local body elections, citing concerns over declining public confidence in EVMs.
The state government subsequently enacted the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Act, 2026, paving the way for the use of ballot papers in local body elections.
