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Rs 1,000 crore black money trail detected in tax raid on leading Gujarat business group

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The Income Tax Department has detected unaccounted transactions exceeding Rs 1000 crore in a search and seizure operation against a prominent Gujarat group on engaged in diversified businesses of textiles, chemicals, packaging, real estate and education, according to information provided by the finance ministry.

Unaccounted cash to the tune of Rs 24 crore and unexplained jewellery valued at Rs. 20 crore have been seized during the course of the search, the official statement said.

The search action on July 20 covered a total of 58 premises, spread across Kheda, Ahmedabad, Mumbai, Hyderabad and Kolkata.

As a result of the search operation, incriminating evidence in the form of documents and digital data has been seized.

The evidence reveals that the group has been engaged in large scale tax evasion by 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 have also been found.

It was also found that the group has been 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.

Further investigations are in progress.