Rs 250 crore in black money detected in tax raid on Mumbai textile company

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The Income Tax Department has detected a black money trail of over Rs 250 crore in a search and seizure operation on a group engaged in agro and textile business in Mumbai, according to information provided by the finance ministry today.  </p>
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Evidence seized in the raid revealed that the group has generated a huge amount of cash through claiming bogus purchases of various materials including packing material of more than Rs 100 crore. Apart from this, the group has also indulged in unaccounted sales of agro and textile items over Rs. 150 crore, the finance ministry statement said.</p>
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Unaccounted cash of Rs. 1.4 crore has also been seized during the search operation.</p>
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As many as 27 premises were covered during the search action in Mumbai and Delhi NCR on July 5.</p>
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Handwritten diaries containing cash transactions have also been seized, which have been duly corroborated by statements of some of the beneficiaries covered under the search action.</p>
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During the course of the search operation, a large amount of incriminating evidence in the form of documents and digital data have been seized.</p>
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According to the official statement, it was found during investigation that most of the turnover of the listed companies of the main group has been generated through circular trading. The promoter of the group was involved in systematic manipulation of performance of certain group companies on stock markets, with the help of stock brokers.</p>
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Several instances of out of books payment to some stock brokers for unlawful purposes, have also been found. All such irregularities have been admitted by both the promoter and the stock brokers. The group is also supported by a professional person, who is primarily engaged in providing accommodation entries to several other groups, in exchange of cash.</p>
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Searches were also conducted in case of the group which is involved in providing accommodation entry. This group is found to be operating and controlling various concerns including LLPs, companies and proprietorship concerns through which accommodation entry of sale and purchase of cut and polished diamond as well as shares are given in the guise of genuine business. The main persons of the group have admitted in their statement under oath, about arranging accommodation entries pertaining to expenses and unsecured loans for various beneficiaries, against cash.</p>
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A preliminary analysis of a few years of such transactions shows that accommodation entries in the nature of bogus loans and expenses exceeding a few hundred crore rupees have been provided through these entities.</p>
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Further investigations are still in progress.</p>
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<strong>Also read: <a href="https://www.indianarrative.com/economy-news/rs-crore-black-money-trail-unearthed-in-tax-raid-on-odisha-black-stone-mining-and-trading-group-182593.html">Rs 80 crore black money trail unearthed in tax raid on Odisha black stone mining and trading group</a></strong></p>