CBIC unearths ₹150 cr cash in raids on Kanpur-based bizman

Biggest cash recovery in the history of CBIC and no arrest made so far in the case, says Vivek Johri, chairman, Central Board of Indirect Taxes and Customs

KANPUR Tax raids on the premises linked to Piyush Jain, a Kanpur-based perfume businessman, yielded more than ₹150 crore in cash, Vivek Johri, chairman, Central Board of Indirect Taxes and Customs (CBIC), said in a statement on Friday..

Income Tax department unearthed almost ₹150 crore in cash in a tax raid at businessman Piyush Jain’s residence, in Kanpur on Friday. The cash bundles were all wrapped in paper covers and secured with yellow tape. (ANI Photo)

This was the biggest cash recovery in the history of CBIC and no arrest was made so far in the case, he told media.

Officials of the Directorate General of GST Intelligence (DGGI) at Jain’s house in Anandpuri said 57 big tin boxes were purchased to keep the cash and a container truck was hired for its transportation amid tight security.

The number of currency counting machines was also doubled to eight — two were brought in from the State Bank of India’s Kalyanpur branch in the noon. “The counting of notes was continuing for the second day,” the officials said indicating that the cash was in excess of ₹150 crore.

Videos and photographs coming from inside the house showed cash stuffed in two wardrobes of Jain’s house. The bundles of currency were wrapped in paper, plastic covers and were secured with Khaki coloured tape. Another picture showed income tax officials surrounded by more piles of cash, and three currency counting machines in the room.

The raids on multiple premises in Uttar Pradesh, Gujarat and Mumbai began on Thursday at a factory owned by Ms Trimurti Fragrances, which manufactures Shikhar brand of paan masala in Kanpur. The raids extended to offices and warehouses owned by Ganpati Road Carriers, also in Kanpur, following which the action shifted to Piyush Jain, a supplier of perfume compound to Shikhar.

“Based on intelligence inputs, the residential premises of partners of Ms Odochem Industries supplying perfumery compounds was also searched,” said a GST department’s statement.

“During the search proceedings at the residential premises, huge amounts of cash, wrapped in paper, plastic have been found. The process to count the cash has been initiated with the help of State Bank of India (Kanpur) officials, which may continue till December 24 evening,” the statement said.

“The total amount is expected to be in excess of ₹150 crore,” it further said.

GST officials said the money was linked to the dispatch of goods through fake invoices and without generating e-way bills by the transporter who generated multiple invoices in the name of non-existent firms. All the invoices were below ₹50,000 for one truck-load to avoid generation of bills.

At least 200 fake invoices used for transportation of goods without payment of GST had been recovered from the warehouse of the transporter, said the DGGI.

The DDGI team from Ahmedabad zone took Jain’s two sons, Pratyush Jain and Molu Jain, to their ancestral house in Chipatta locality in Kannauj later in the day. The house was sealed on Thursday as Jain refused to be present when asked to come for the search, said officials.