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Rs 500 crore in black money detected in tax raid on steel pipe manufacturer in Ahmedabad

Rs 500 crore in black money detected in tax raid on steel pipe manufacturer in Ahmedabad. (Representational Image)

The Income Tax Department has detected a whopping Rs 500 crore in black money in a search and seizure operation on a prominent Ahmedabad-based business group engaged in the manufacturing of stainless steel and metal pipes.

The search action carried out on Nov 23 covering 30 premises in Ahmedabad and Mumbai has also resulted in the seizure of unaccounted cash of Rs. 1.80 crore and unexplained jewellery valued at Rs. 8.30 crore. So far, 18 bank lockers have been sealed.

During the course of the search operation, a large number of incriminating documents, loose sheets and digital evidence has been seized. The evidence contains detailed records of the group’s unaccounted income on which due taxes have not been paid.

Also read:  Over Rs 400 crore in black cash unearthed in tax raid on leading dairy group in Pune

A preliminary analysis of evidence indicates that the group has been indulging in unaccounted sales of goods and scrap in cash which is not recorded in the regular books of account. Further, incriminating evidence of various malpractices such as unaccounted cash loans advanced and interest earned thereon, expenses incurred in cash, bogus expenses and purchases and unaccounted investments in land has also been unearthed.

A deleted WhatsApp chat of a key person, detected during the search, revealed evidence of obtaining huge accommodation entries by the group to reduce its taxable income. Certain benami properties have also been identified.

Further investigations are still in progress.