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I-T department conducts raids on Xerox offices

The Income Tax department on Wednesday searched 23 places of Xerox Modi Group in the wake of the allegation of giving bribes to government officials to secure orders.

The search was carried at 20 places in Delhi, two places in Uttar Pradesh (Muzaffarpur and Moradabad) and also in Kolkata, official sources said.

The sources said that the searches, which began at 0800 IST, had nothing to do with the inquiry launched by the Department of Company Affairs and that the exercise was being carried out to ascertain the source of payment of bribes to the government officials by the corporate house.

The Income Tax department was looking into the accounts for the last six years, they said alleging that the company over the years, have indulged in tax evasion worth nearly Rs 250 million.

The sources said that the premises of some senior officials of the company were also being searched.

They, however, said that neither the house of chairman of Modicorp, the company's Indian partner, nor of the three American directors based in Delhi were being searched.

The sources said three premises of the company were also being "surveyed" by the taxmen.

The searches were carried out after a review by PriceWaterhouseCoopers, which pointed out gross irregularities and unethical business practices by the company.

US based Xerox Corporation hold 68 per cent share in Xerox Modi, while 25 per cent belongs to B K Modi and the balance is with the public.

Company officials were, however, not available for comment.

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