The Income Tax Department carried out search and seizure operations on two real estate business groups of Mumbai and certain individuals/ entities associated with them. The search operations commenced on October 7 and have been carried out at about 70 premises spread across Mumbai, Pune, Baramati, Goa and Jaipur.
The evidence gathered during the search has revealed several prima-facie unaccounted and benami transactions. Incriminating documents, evidencing unaccounted income of about Rs 184 crore of the two groups have been found.
The search action has led to identification of transactions by these business groups with a web of companies which, prima facie, appear to be suspicious. A preliminary analysis of the flow of funds indicates that there has been an introduction of unaccounted funds in the group by way of various dubious methods like introduction of bogus share premium, suspicious unsecured loans, receipt of unsubstantiated advance for certain services, collusive arbitration deals out of non-existent disputes, etc.
It has been observed that such suspicious flow of funds has taken place with the involvement of an influential family of Maharashtra.
The funds so introduced in a dubious manner, have been utilized for acquisition of various assets such as office building at a prime locality in Mumbai, flat in posh locality in Delhi, resort in Goa, agricultural lands in Maharashtra and investments in sugar mills. The book value of these assets aggregates to about Rs. 170 crore.
As per the tax department, unaccounted cash of Rs 2.13 crore and jewellery of Rs 4.32 crore have been seized. Further investigations are in progress.
Earlier on October 10, the Income Tax Department unearthed unaccounted cash worth Rs 250 crore and 9.5 Kg of gold jewellery in raids conducted on premises of one chit fund and another retailer of silk sarees and other garments. The search operations were carried out at 34 premises located in Kanchipuram, Chennai and Vellore on October 5, 2021.
In the case of Chit Fund group, I-T sleuths found that it was running an unauthorised chit fund business, and all the investments and pay-outs of more than Rs 400 crore, in the last few years, were done entirely in cash.
Investigation revealed that the group had earned unaccounted income by way of commission and dividends. Numerous promissory notes, signed post-dated cheques and power of attorney documents kept as collateral for the loans given or from chit subscribers have also been seized, the department said.
