India, April 24 -- As financial fraud allegations continue to surface in the Indian startup ecosystem, with companies like Gensol and Medikabazaar under the lens, the Income Tax Department has reportedly stepped up its vigilance over investors and promoters.

An ET report said that notices have been sent to startup investors and promoters, seeking details on certain investments, including tax returns for the three years before the investment, bank account details and proof of income.

These notices target mainly startups that are not recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) or instances where the department suspects the investment might be masking the real source of funds.

This forms a part of a b...