E-Paper
Unaccounted transactions of ₹400 cr to fore after searches on paan masala group
KANPUR The income tax department has detected unaccounted transactions of more than ₹400 crore after it carried out searches on a paan masala manufacturing and real estate group based in Kanpur and Delhi, the Central Board of Direct Taxes (CBDT) said on Friday
KANPUR The income tax department has detected unaccounted transactions of more than ₹400 crore after it carried out searches on a paan masala manufacturing and real estate group based in Kanpur and Delhi, the Central Board of Direct Taxes (CBDT) said on Friday.
The department also found over ₹52 lakh cash and 7 kg gold during the searches, it said.
The 31 premises of the firm were searched in Kanpur, Noida, Ghaziabad, Delhi and Kolkata. The said group has been earning huge revenues through unaccounted sale of paan masala and unaccounted real estate business. This income was laundered back into the concerns through a vast link of shell companies, according to a press statement issued by the I-T department.
Digital and paper evidence found during the search revealed a nationwide network of such shell companies created by the group. The directors of these companies are persons of with no financial means, claimed the press release.
“While some of these persons are not even filing income tax returns, some others who file returns, do so of extremely meagre amounts,” said Surabhi Ahluwalia, spokesperson, CBDT.
Field investigations further revealed that these paper companies did not exist at the addresses mentioned and never conducted any business.
“Surprisingly, these companies advanced so called loans and advances to the real estate group amounting to ₹226 crore in just three years. A network of 115 such shell companies has been found. Forensic analysis of the digital data is in progress. The main ‘directors’ also admitted that they were only ‘dummy directors’ and signed on the dotted lines as and when required in return for commission for their ‘services’,” according to the press statement.
During the search, the I-T teams also discovered hideouts where troves of documents containing details of unaccounted money and their process of laundering, reads the press note.
The team uncovered the modus operandi, including the role of ‘cash handlers’.
The modus operandi is similar with respect to the business of paan masala. They too have laundered back their unaccounted income through an extensive network of such shell companies.
Unaccounted loans and premium received from such paper companies exceeding ₹110 crore in three years have been detected.
Forensic analysis of evidence is in progress. So far, 34 bogus bank accounts of shell companies have been found. Deductions claimed under Income Tax Act, 1961 with respect to treatment of biodegradable waste are under scrutiny. It has also been discovered that through some of these paper companies based in Kolkata, bogus sale and purchase of manure has been shown, amounting to ₹80 crore, so that cash can be deposited into bank accounts, the press note stated.
