The Income Tax Department in its raids on March 4 searched 27 premises of two Chennai-based groups -- a leading bullion trader and one of the biggest jewellery retailers. The I-T department has not mentioned the names of these two companies but said the search operation was carried out in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Trissur, Nellore, Jaipur and Indore.
The searches so far have resulted in the detection of undisclosed income of over Rs 1,000 crore. Unaccounted cash of Rs 1.2 crore has also been seized so far.
During its raids at the bullion trader's premises, the I-T depart sleuths found unaccounted cash; bogus cash credits; cash credits in dummy accounts in the guise of advance for purchases; unexplained cash deposits; bogus outstanding sundry creditors; and huge unexplained stock variations.
During a raid at the jewellery retailer, the department personnel found the jeweller company received and repaid cash loans from local financiers; had given cash loans to builders and made cash investments in real estate properties; made unaccounted gold bullion purchases; claimed wrongful bad debts; and inflated wastages in the conversion of old gold to fine gold and jewellery making.
Further investigations are in progress, the department stated.