I-T raids |Will fully cooperate in investigations, says Hilal Rather

Day after Income Tax Department conducted raids on premises of Hilal Rather son of former finance minister Abdul Rahim Rather in alleged loan misappropriation and tax evasion cases, the junior Rather, while saying that it is the prerogative of the agencies to investigate any matter and take action against any errant person, said he will provide full cooperation in the investigations.

However, in a statement, the promoters of Paradise Avenue, the property that was mentioned in the news reports, said it does not belong to Hilal Rather solely and he is only one of partners of the partnership firm among five people. The statement said they want to set the record straight and clarify “the inaccuracies, misinformation and false insinuations in the various media reports”.

“Time and again the focus of all media reports concerning Paradise Avenue is only on him (Hilal) and invariably name of Abdul Rahim Rather is dragged into it without any reason inspite of the fact that he has nothing to do either with M/s Paradise Avenue or Simula Group, the company of Hilal Ahmad under the banner of which he has been successfully doing business for last 17 years in Jammu,” read the statement.

“It is being widely reported that the loan has been fraudulently obtained from the bank even without having title of the land in possession which is completely baseless as no bank releases a single penny to any borrower without securing adequate security in place. In this land was registered in the month of July 2012 and funds were released only in September 2012 after creating all securities and pledges. Further it has been assumed that the value of land has been artificially inflated in the sale deeds, which is again not true as the land has been registered at the existing circle rates of the time.”

The statement says that the news about illegal waiter of Rs 50 crore given to the firm through One Time Settlement (OTS) is not true as the bank itself through its letter dated 20.10.2018 , refused to accept any OTS citing that there was no such provision with the bank.

“The whole issue of the loan amount of Rs 177.60 Crore has to be understood in the right perspective. The principal component of the loan primarily for construction of the project was only around Rs128 crore, rest being interest component. The principal component has been utilized towards construction of 342 flats on the project site unlike media reports that the loan was sanctioned for only 52 flats of two towers, which are actually the ones which have been delivered to customers. Structural work in the remaining two towers which is the bulk of the project have almost been completed,” read the statement.

 It also stated that as far as directorship in a foreign agency is concerned and a bank account, the promoters would like to put on record that Hilal Rather has a minority interest in a company in Dubai which is a connection distribution agent of DU Telecom, which does not require any major capital investment.

“As far as the rest of the issues regarding the transactions of the firm etc. are concerned, no official intimation has been provided to the promoters by the agencies of the information and evidence gathered by them,” it said.