Close on the heels of Securities and Exchange Board of India slapping a 14-year ban on scamster Ketan Parekh, Centre said the Income Tax department has found an "undisclosed" income of Rs 1,993.26 crore (Rs 19.93 billion) with the big bull's KP group.

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"Investigation/assessment proceedings have been completed in October 2003 and undisclosed income has been assessed at Rs 1,993.26 crore, raising the tax demand of Rs 1,357.37 crore from KP group," government said in its Action Taken Report on the recommendations of the Joint Parliamentary Committee on 2001 stock scam.

The report, tabled in Parliament recently, said officers of Income Tax department were in touch with Central Bureau of Investigation, which was investigating the matter.

The JPC had found that Ketan Parekh was "the key person involved in all dimensions of the stock market scam, which surfaced in March 2001, as also payment problems in Calcutta Stock Exchange and the crash of Madhavpura Mercantile Cooperative Bank."

Centre said a search was conducted by the Income Tax department in March 2001.

Sebi on Wednesday debarred stock brokers Ketan Parekh and Kartik K Parekh and seven of their entities from trading in the market for 14 years after finding their involvement in the 2001 stock market scam.

On the special cell, constituted by the finance ministry to investigate the nexus between brokers and industrial houses, the report said the cell was meeting periodically and information was being exchanged among various agencies on real time basis.