A section of high networth individuals who were allotted shares of Oil and Natural Gas Corp through the recently concluded public issue have attracted the attention of tax authorities.

The I-T Department has asked the HNIs to furnish the source of funds, inter alia, for application of the ONGC issue with copy of relevant bank account.

An I-T official of assistant director rank confirmed that a notice was delivered to a section of HNIs. He could not quantify the number of such letters issued.

It was learnt the HNIs, who completed sale of ONGC shares in the first hours of March 29 by transferring the shares to their counters, were subject matter of I-T investigation. Other information being sought by the I-T department included details of shares applied for and number of shares allotted, dematerialised account, present holding of ONGC shares and permanent account number.

The letter issued by the I-T authorities said, "The above mentioned information is urgently required and the information except for serial number 4 (source of fund) may be furnished to the inspector of I-T, bearer of the letter."

Information about source of fund and relevant bank account should be furnished in person on a specified day to the office of the assistant director of I-T the letter added.

HNIs were "misallotted" ONGC shares in the first hours of trading on March 29. Realising the default, a portion of the shares were withdrawn from their demat accounts nearly two hours after. The excess number of shares they sold were later auctioned.

Another section of HNIs sold and transferred the ONGC shares in the first hours of March 29 leaving no chance to the registrar of the issue, MCS, to withdraw the excess shares from their accounts. These HNIs have received the clarifications from I-T.

One HNI, who had applied for 40,000 ONGC shares, told Business Standard that he was called on by the I-T officials.

When informed the I-T official that he funded the application on maturity of a fixed deposit, he was asked to furnish the details of fund he had put in the FD two years ago.

"This is harassment. The I-T department has every right to check the source of my income. But that could be done by going through my I-T returns. This is not the way to ask me to disclose the source of fund. How can I tell the I-T department off-hand the source of the money I chipped in the FD two years ago," he asked.