Mumbai- In a sweeping operation, the Income Tax department has seized an astounding Rs 94 crore in undisclosed cash, along with a treasure trove of gold and diamond jewelry worth over Rs 8 crore. These raids were conducted across Karnataka, Andhra Pradesh, Telangana, and New Delhi, targeting government contractors, real estate developers, and their associates.
The tax department’s search, executed at approximately 55 locations on October 12, unveiled a substantial cache of incriminating evidence, encompassing loose sheets, hard copies of documents, and digital data. The operation exposed a web of financial irregularities where contractors systematically understated their income by inflating expenses, resorting to fictitious purchases, and making false claims of expenses related to sub-contractors and ineligible expenditures.
These dubious practices have not only led to the creation of extensive unaccounted cash reserves but also resulted in the accumulation of undisclosed assets. The investigations further unraveled discrepancies in Goods Receipt Note (GRN) validation, revealing inflated expenses, and inconsistencies between recorded purchases and the actual physical transport of goods, particularly in the context of sham transactions with sub-contractors.
Moreover, the contractors have been implicated in expensing non-business-related costs, including dubious claims of liaison expenses. The search also exposed a network of substantial unaccounted cash transactions, completely omitted from official financial records, involving the individuals under scrutiny, their sub-contractors, and associates, including certain individuals involved in handling cash.
The Income Tax department is currently engaged in ongoing investigations to delve further into these revelations.
