The income tax department on Tuesday busted a tax evasion racket in Hyderabad by a group of grain and pulse traders, who were operating a bank account without an authorisation, officials said on Wednesday.
According to sources, officials stumbled upon the account with a reputed nationalised bank at Nampally in which Rs 17 crore was deposited during their investigation into transactions of huge amounts after the demonetisation of two high-value currency notes in November last year.
During interrogation, the account holder told officials he was not aware that such a huge amount was deposited in his account and authorities found that he does not have any source of such a huge income.
The account holder said his account was operated by a friend, who is an accountant with a pulse trader in Mukhthyar Gunj market in the old city.
Officials identified the person who deposited the money in the account through video footage obtained from the closed circuit television cameras installed in the bank.
“During inquiries, it was revealed that the traders of Mukhthyar Gunj, Begum Bazar, Maharaj Gunj and Malakpet gave cash to this person for depositing it in this particular account and immediately transferring the same through RTGS to the accounts of various wholesale merchants involved in trading of pulses, grain, oil and textiles, at Latur, Udgir, Akola and other cities in Maharashtra. They, in turn, sent goods to the respective traders of Hyderabad,” sources said.
Payments were made through one account and goods received in the name of a trader other than the account holder, from whose account the payments were made, in such transactions. Such goods were sold outside books without paying VAT or other taxes.
“Investigations revealed that there are many such accounts in various other banks in the city, wherein there are only cash deposits and immediate RTGS to outstation parties in such accounts,” sources added.