A search and seizure operation carried out by the Income Tax Department on a Pune and Thane based unicorn start-up group has revealed black money transactions to the tune of a whopping Rs 1,500 crore.

“During the search operation, a complex hawala network of some Mumbai and Thane based shell companies, was unearthed. These shell companies exist on paper, and were created only for the purpose of providing accommodation entries. Preliminary analysis has revealed that the total quantum of accommodation entries provided by these shell entities exceeds Rs. 1,500 crore,” according to a finance ministry statement issued on Sunday.

The group has a pan-India presence with annual turnover exceeding Rs 6,000 crore and is engaged primarily in the business of wholesale and retail of construction material.

The raids carried out March 9 covered 23 premises of the group in Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh and Madhya Pradesh, the official statement said. 

A large amount of incriminating evidence in the form of hard copy documents and digital data have been seized during the search operations.

The search action also revealed that the group had obtained huge foreign funding via the Mauritius route, by issuing shares at an exorbitantly high premium.

The evidence revealed that the group has booked bogus purchases, made huge unaccounted cash expenditure and obtained accommodation entries, aggregating to the tune of over Rs. 400 crore, the official statement explained. 

When confronted with the evidence, the Directors of the group confessed to the modus operandi and disclosed additional income of more than Rs 224 crore in various assessment years, and consequently offered to pay their tax liability.

Unaccounted cash to the tune of Rs 1 crore and jewellery valued at Rs 22 lakh have also been seized. 

Further investigations are in progress.

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