The Income Tax Department carried out search and seizure operation on a group based in Eluru on January 28, 2021 at 21 different locations across Andhra Pradesh and Telangana, as per statement issued by Ministry of Finance on Thursday. The group entities are engaged in film financing, aqua culture, real estate, distribution of films and money lending.
During the course of the search operation, hand written books, agreements and loose sheets depicting undisclosed cash transactions were seized. Total assets worth Rs 17.68 crore which includes cash of Rs 14.26 crore, gold jewellery, bullion and silver valued at Rs 3.42 crore have been seized so far.
"The highlight of the search action was the seizure of such huge amount of cash and gold in mofussil stations like Eluru and Rajamahendravaram," the ministry said.
In total, the search has resulted in detecting incriminating evidence relating to undisclosed financial transactions of Rs 161 crore from FY17 to FY20, taxable in the hands of both the transacted parties, it added.
"The group is lending huge amounts in cash and collecting interest for the same in cash, which are undisclosed. It is also observed that certain entries totaling to Rs.13 crore were deleted from the cloud data, but recovered. A major suppression of income from distribution of films and running theatres has also been observed. The group is also accepting cash over and above the registration value in sale of plots," the FinMin said.
As per the ministry, further investigations are in progress.
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