After Ministry of Corporate Affairs, Income Tax department too has launched a probe to trace the source of funding of various firms that invested in BJP president Nitin Gadkari's company Purti Power and Sugar Limited(PPSL).

A top IT official told a news agency in Mumbai that prima facie inactive firms had pumped money into PPSL.

A report would be submitted to the Central Board of Direct Taxes shortly.

Investigation wing of the department in Mumbai and Pune said that they have already started gathering documents relating to these companies.

Officials of the investing companies would be summoned in due course and, if needed, the BJP chief would also be asked to be present.

Gadkari is at the centre of a raging controversy over funding of PPSL with media reports claiming that major investments and large loans to Purti were made by Ideal Road Builders (IRB) group, which had won contracts between 1995 and 1999, when the BJP chief was PWD minister in Maharashtra.

Media reports also claimed that shell companies were floated for making investments and their fake addresses were submitted to the Registrar of Companies.

On Tuesday, Corporate Affairs Minister Veerappa Moily had said that Registrars of Companies would inquire into the allegations.

On his part, Gadkari has denied the allegations and said he was prepared for a probe.