Income tax sleuths found Rs 10 crore stashed inside a car belonging to Noida’s engineer-in-chief Yadav Singh during raids in connection with illegal sale of plots in the NCR town, officials said on Friday.
Singh secured the key post under the previous Bahujan Samaj Party (BSP) regime in Uttar Pradesh, and under his watch the local authority signed pacts with construction firms for projects worth Rs 954 crore within eight days in December 2011, investigators said.
He was suspended by the Samajwadi Party government in 2012 over allegations of embezzlement but made a comeback after being cleared in an inquiry.
I-T department also seized two kilograms of gold and jewellery from Singh’s Noida residence apart from Rs 10 lakh cached in another vehicle.
Raids continued for the second day on McConn Infra Private Limited and Meenu Creations Private Limited in the National Capital Region (NCR) following allegations that the two companies got 30 to 40 plots in Noida through bogus shareholdings in Kolkata.
“These shares were later offloaded. In this way, those who purchased the shares got plots. All these transactions were made in the last three to four years,” said Krishna Saini, director general of income tax (investigation).
Singh’s wife Kusumlata was a director at Meenu Creations and held a similar post at McConn Infra till 2013.
Saini said Rs 40 lakh was recovered from the residence of Yadav’s associate Anil Peshwari – a director at McConn.
Investigators said McConn likely hoarded excess stocks and some of its benami properties were also being probed.