IT Department conducts searches in Gujarat; Detects Unaccounted Cash of Rs 24 crore
The Income Tax Department carried out a search and seizure operation on 20.07.2022 on a prominent business conglomerate engaged in diversified fields of Textiles, Chemicals, Packaging, Real estate and Education. The search action covered a total of 58 premises, spread across Kheda, Ahmedabad, Mumbai, Hyderabad and Kolkata.
Various incriminating evidences, including documents and digital data, have been discovered and seized as a result of the search operation. These proofs show that the group has been engaging in widespread tax evasion using a variety of strategies, such as logging fictitious purchases, unreported cash sales outside of the books of account, and on-money receipts from real estate transactions. The group has also been discovered to be involved in the stacking of unexplained funds using share premium from shell firms situated in Kolkata. There have also been some reports of unreported income produced from unsecured cash advances known as “sarafi.”
Additionally, it was discovered that the organisation had been using operators to manipulate share prices of its listed companies in order to make money. Evidence obtained further indicates that the group has been diverting money to promoters’ personal accounts by using bogus entities. Additionally, a review of the data points to the group’s involvement in the falsification of the financial records of its public limited businesses.
The search operation turned out unaccounted transactions worth more than Rs. 1000 crore. In the course of the search, so far, unaccounted cash totaling Rs. 24 crore and unexplained jewellery, silver, etc. worth Rs. 20 crore have been found.
Further investigations are in progress.