Maharashtra: I-T Dept seizes Rs 56-cr cash, Rs 14-cr jewellery during raids

I-T Dept carried out a search operation on two major groups engaged in manufacturing of steel TMT Bars. The search operation covered over 30 premises spread across Jalna, Aurangabad, Nashik and Mumbai

The Income-tax department has seized a whopping Rs 56 crore in cash apart from jewellery valued at Rs 14 crore after it raided two major Maharashtra business groups engaged in manufacturing of steel TMT bars, the CBDT said Thursday.

The stash of cash and jewellery was kept in more than 30 accounts of a cooperative bank and inside an undisclosed chamber of a farmhouse.

The searches were launched on August 3 and more than 30 premises of the two entities in Jalna, Aurangabad, Nashik and Mumbai were covered.

In a statement, the CBDT said initial analysis of seized documents show that the groups "engaged in large-scale tax evasion, resorting to inflation of expenditure through bogus purchases from several entities".

The statement did not identify the two groups that were searched. The Central Board of Direct Taxes (CBDT) frames policy for the I-T department.

It said the two entities were also found to be "involved in GST frauds".

"Evidence has also been found of excess stock of raw materials, not recorded in the books of account, exceeding Rs 120 crore.

"Examination of evidence in one of the groups further reveals that it has indulged in layering its unaccounted income through bogus unsecured loans and share premium, obtained from Kolkata-based shell companies," the CBDT alleged.

The taxman also detected "a large number of lockers of both the groups, opened in the names of employees of the companies, which were maintained with a co-operative bank."

"So far, the search operation has resulted in seizure of unaccounted cash of Rs 56 crore and bullion and jewellery worth Rs 14 crore," the statement said.

More than 30 bank lockers, including several lockers located in the cooperative bank, were searched and "huge" unaccounted cash and gold jewellery was found and seized from these lockers.

It said a "substantial" amount of unaccounted cash was seized from a "secret room" located on the farm house belonging to one of the groups.