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Rs 80 crore black money trail detected in tax raid on leading Madhya Pradesh group

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The Income Tax Department has detected a black money trail to the tune of Rs 80 crore in a raid carried out on a leading group engaged in the business of sand mining, sugar manufacturing and liquor, according to an official statement issued today.

The search and seizure operation carried out on July 14 covered several premises located in Madhya Pradesh and Mumbai.

The key person of the group is also occupying a political position.

The analysis of seized evidence of the sand mining business reveals that the group has been indulging in tax evasion by not recording sales in the regular books of account. The comparison of actual sales as per digital evidence vis a vis accounted sales of contemporary months clearly exhibits regular large-scale suppression of sales exceeding Rs 70 crore. Evidence of non-payment of royalty on such unaccounted sales has also been found, the Income Tax Department said.

Further, a sum of more than Rs 10 crore has been found to be paid in cash by the group to other business associates, which is outside the regular books of account, the statement further explained.

So far, the search action has led to seizure of undeclared assets exceeding Rs 9 crore, the official statement added.

During the course of the search operation, a large number of incriminating documentary and digital evidence has been seized.

In the case of the sugar manufacturing business, issues pertaining to stock difference have also been detected.

Evidence gathered during the search further reveals that some benamidars have been made partners in a firm doing the sand mining business and were also found to be declaring profits in their income tax returns. However, the money was actually being

transferred by them to the beneficial owner of the group. During the search, one such benamidar, in his statement, admitted to being merely a salaried employee, having neither any knowledge of the affairs of the business nor having received any profits from such business.

Further investigations are still in progress.

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