The Income Tax Department has detected black money to the tune of Rs 750 crore in raids carried out on three leading contractors based out of Bengaluru engaged in the execution of major irrigation and highway projects, according to information provided by the finance ministry on Tuesday.

The three groups have themselves admitted to Rs 487 crore of this amount as being their undisclosed income.

The searches commenced on October 7 and have been carried out at 47 premises spread across four states.

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Incriminating evidence in the form of physical documents and digital records has been seized. During the search, unaccounted hard cash of Rs. 4.69 crore, unaccounted jewellery and bullion valued at Rs. 8.67 crore and silver articles valued at Rs. 29.83 lakh have also been seized.

During the search action, it was found that these three groups were involved in suppression of their income by resorting to bogus purchases; inflation of labour expenses and booking of bogus sub-contract expenses.

The investigation revealed that one of the groups has booked bogus sub-contract expenses in the name of about 40 individuals of no means and unconnected to the construction business. Upon enquiry, these individuals have admitted to the said manipulation.

One of the groups admitted to having indulged in inflation of labour expenses amounting to Rs. 382 crore. Further, another group has been found to have taken accommodation entries, from non-existing paper companies, to the extent of Rs. 105 crore, which stands admitted by this group.

Further investigations are still in progress.