The Income Tax Department on Friday informed that they had conducted search and seizure operation, covering over 40 premises spread over Surat and Mumbai, on a prominent group of Gujarat, engaged in the business of construction of residential and commercial complexes, land transactions as well as real estate financing.
During the course of the search action initiated on December 12, as per the IT Department’s press release, various incriminating documentary and digital evidence were found and seized, including a parallel set of books of account in the case of group entities. “The transactions of certain group entities have been found to be maintained in a highly coded manner but were successfully decoded by the search team. A preliminary analysis of the evidence indicates unaccounted cash receipt of on- money of more than Rs 300 crore on sale of flats/land which is not found recorded in the regular books of account,” the release read.
Further, the department informed that evidence of unaccounted cash infusion by partners, bogus accommodation entry loans by payment of cash and unexplained cash expenses etc. were also noticed.
“Deeper examination of physical books of account and incriminating evidence seized during the search action shows unexplained investments of more than Rs 200 crore in real estate and more than Rs 100 crore by way of loan financing,” the release added.
The IT Department, during its search action, seized “unexplained cash of Rs 4 crore and jewellery valued at Rs 3 crore while more than a dozen bank lockers have been placed under restraint”.
As per the release, the search action led to the detection of estimated undisclosed receipts and suspicious nature of entries aggregating to more than Rs 650 crore.