Over 20 benami properties, Rs 55 crore black cash detected in tax raid on Maharashtra group

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The Income Tax Department has unearthed benami properties and cash transactions running into crores of rupees in a search and seizure operation carried out on a Mahrashtra-based popular chain of educational institutes, running several schools and colleges at multiple locations in India and abroad.</p>
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During the search, evidence of about two dozen immovable properties located in Maharashtra, Pondicherry and Tamil Nadu has been gathered which are either benami properties or not disclosed in the respective returns of Income. These properties have been placed under provisional attachment, according a statement issued by the Income Tax Department on Thursday.</p>
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The money to buy these properties has come from funds that were illegally siphoned off by the promoter families for their own use from the education trusts.</p>
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The search also revealed evidence of borrowings on Hundi aggregating to Rs 55 crore, and their repayment in cash in the form of discharged Promissory Notes/Bills of Exchange, which have been seized.</p>
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The search action has resulted in the seizure of unaccounted cash of Rs. 27 lakh and jewellery worth Rs. 3.90 crore as well.</p>
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The search operation carried out on March 14 covered more than 25 premises spread over locations in Maharashtra, Karnataka and Tamil Nadu.</p>
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During the search, a large amount of incriminating evidence including hard copy documents and digital data have been seized, which reveal that substantial funds have been siphoned off from the Trusts for the personal benefit of the group’s promoters and their family members, in violation of provisions relating to claim of exemption by the Trusts under the Income-tax Act, 1961.</p>
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The modus operandi of diverting funds from the Trusts includes debiting of bogus expenses in the guise of purchase of goods and services from various dummy companies and LLPs owned by the promoters, their family members, and some of their trusted employees. It was found that no actual goods or services were delivered by these entities. This has been corroborated by the employees in their deposition.</p>
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Further investigations are still in progress.</p>
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<strong>Also read:</strong>  <a href="https://www.indianarrative.com/economy-news/rs-crore-black-money-deals-unearthed-in-tax-raid-on-leading-real-estate-group-in-delhi-ncr-159038.html">Rs 3,000 crore black money deals unearthed in tax raid on leading real estate group in Delhi & NCR</a></p>