Rs 100 crore black money trail detected in tax raid on two business groups in Maharashtra

The Income Tax Department detected unaccounted income of more than Rs. 100 crore in a search and seizure operation on two prominent business groups in Maharashtra. While one of the group’s is engaged in the business of sand mining, sugar manufacturing and road construction the other is in the healthcare sector and also running a medical college, according to an official statement released today.

Undisclosed assets of more than Rs. 5 crore have also been seized after the search action covering more than 20 premises spread over Solapur, Osmanabad, Nashik and Kolhapur districts of Maharashtra on August 25, the Income Tax Department said.

During the course of the search operation, a large amount of incriminating evidence, in the form of hard copy documents and digital data has been seized. The evidence reveals various modus-operandi of tax evasion adopted by the group including booking of bogus expenses, undisclosed cash sales, unexplained loans and credit entries.

In the case of the group engaged in sand mining and sugar manufacturing, documentary evidence of unaccounted cash sales of sugar exceeding Rs. 15 crore have been seized. The search action has revealed that the group has introduced its unaccounted income in the form of bogus unsecured loans in its books of accounts. Several lenders to the group, as well as promoters of the group have admitted that unaccounted cash generated by the group exceeding Rs. 10 crore was routed in its books of account in this manner, the statement explained.

Evidence of capital gains of about Rs. 43 crore on the sale of assets by a non-filer corporate entity have also been seized, it added.

In the other group engaged in the business of healthcare and running of medical college, as also road construction, evidences of undisclosed cash receipts representing capitation fee and refund of salary and stipend paid to the doctors/PG students have been found. Moreover, evidence regarding booking of bogus expenses and contractual payments has been seized. Preliminary estimates of such undisclosed income of the group is to the tune of Rs 35 crore, the Income Tax Department statement explained.

Further investigations are still in progress.