Over 75 crore black money detected in tax raid on Delhi-Mumbai hotels and real estate group with Malaysia link

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Income Tax Department has unearthed a Rs 75 crore black money trail in a search and seizure operation on a Delhi and Mumbai-based business group, engaged in the business of hotels, real estate, marble, and lights trading, according to information provided by the finance ministry today.  </p>
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A total of 18 premises across Delhi, Mumbai and Daman were covered during the search action on July 7.</p>
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During the course of the search operation, a large number of incriminating documents and digital data have been seized. The evidence indicates that the group has parked its undisclosed money abroad in certain low-tax jurisdictions.</p>
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The group, through a Malaysia-based web of companies, has finally invested the funds in its hospitality business in India. It is estimated that the quantum of such funds exceeds Rs 40 crore. In its hospitality business, unaccounted sales have also been detected in the banquet division.</p>
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In its trading business of marble and lights, seized evidence indicates unaccounted cash sales to the extent of 50% to 70% of the total sales. Undisclosed excess stock of Rs. 30 crores has also been found.</p>
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The evidence gathered indicates that the group has invested in a few companies abroad, which have been incorporated especially for commodity trading. The net worth of one such company including its profits earned has not been disclosed by the group in its ITRs for the relevant period. Further, it has been detected that the promoter of the group has invested in immovable property in a foreign jurisdiction which has also not been disclosed in his Income tax return. Besides these, certain offshore entities, set up for commodity trading, have been identified, which have also not been declared. </p>
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The search action also revealed that the group was involved in out-of-books cash sales in its India operations.</p>
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So far, undeclared jewellery valued at Rs. 2.5 crore has been seized. Further investigations are still in progress. </p>
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