Income Tax (I-T) Department on February 18 seized unexplained cash of over Rs 8 crore and Rs 44 lakh in various foreign currencies from 22 premises of a Betul-based soya products manufacturing group.
I-T department had carried out search and seizure operations at these premises which were located in- Betul and Satna in Madhya Pradesh, Mumbai and Solapur in Maharashtra, and Kolkata in West Bengal. The I-T department also discovered nine bank lockers during the operations.
"The group has introduced unaccounted income to the tune of Rs 259 crore by way of introduction of Share capital at a huge premium from Kolkata based shell companies," said a Ministry of Finance press release. "The group has also introduced undisclosed income of Rs. 90 crore in its books of accounts by way of sale of paper investments in shell companies to another set of shell companies of Kolkata," the release added.
Finance Ministry has stated that none of these companies were found to be operational at their listed address. The group was also not able to confirm the identities of these companies nor was it able to identify their directors. Many of these "paper" companies were found to have been struck off by the Corporate Affairs Ministry.
"During the search, it was seen that bogus loss to the tune of Rs. 52 crore has been claimed by the group to suppress their profits, by indulging in intra-group out-of-exchange contract settlement. Various companies were formed in the name of employees to carry out these transactions, while there was no actual business carried out between them. Directors of these companies were not aware about any such transactions," read the press release.
The group had incorrectly claimed 'Long Term Capital Gains' exemption of over Rs 27 crore on sale of shares. Later, the investigation revealed that the purchase of these shares was not genuine. The group directors had purchased these shares at nominal value from the non-existent Kolkata based shell companies.
I-T department has seized incriminating evidence in the form of digital media such as laptops, hard drives, pen drives etc. Till now, undisclosed income over Rs 450 crore has been detected, according to the press release.