IT Department searches find unaccounted transactions of Rs 1,000 crore in raids on business group in Gujarat

New Delhi, August 3, 2022

The Income Tax Department has unearthed alleged unaccounted transactions of more than Rs 1, 000 crore during a search and seizure operation carried out on a prominent business conglomerate in Gujarat on July 20.

An official press release said unaccounted cash of Rs 24 crore and unexplained jewellery and bullion valued at Rs 20 crore had been seized during the course of the search.

The business group is 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, the release said.

"As a result of the search operation, various incriminating evidences in the form of documents and digital data have been found and seized. These evidences reveal that the group has been engaged in large scale tax evasion by adopting various methods, including, by way of unaccounted cash sales outside the books of account, booking of bogus purchases and on-money receipts from real estate transactions.

"The group has also been found involved in layering of unaccounted sums through share premium from Kolkata-based shell companies. Certain instances of unaccounted income generated through cash based ‘sarafi’ (unsecured) advances made have also been found," the release said.

According to it, the ground was also found to be involved in profiteering through manipulation of share prices of its listed companies through operators.

"Evidences seized also reveal that the group has been siphoning off funds through fictitious entities for personal use of promoters. Further, analysis of evidence suggests that the group is also involved in manipulation of books of account of its public limited companies," it said.

NNN