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I-T Dept seizes Rs 6.60 crore in cash after raids on a business group in Haryana

I-T Dept seizes Rs 6.60 crore in cash after raids on a business group in Haryana

The preliminary analysis of incriminating evidence indicates that the group has suppressed sales to the tune of Rs 400 crore in the last three years.

The I-T Department has kept 22 bank lockers under restraint. The I-T Department has kept 22 bank lockers under restraint.

The Income Tax Department (I-T Department) seized Rs 6.60 crore of unaccounted cash and jewellery worth Rs 2.10 crore during search and seizure operation conducted on a diversified business group in Haryana.

The department had conducted raids on over 30 premises of the group, spread across the cities of Yamuna Nagar, Ambala, Karnal, and Mohali, on January 11. 

The group is engaged in manufacturing of plywood/plyboard, MDF board, inverter and vehicle batteries, and in refining of lead. During the search operation, digital evidence and various incriminating documents were found and seized in relation to entities of the plywood business, the Ministry of Finance said in a release, without revealing the name of the group.

These included a parallel set of accounts books recording the entries of cash transactions of purchase, sale, payment of wages, and other expenses of group entities, in addition to transactions of investment in immovable properties. 

The evidence revealed the modus operandi (MO) of the group that is involved in generation of cash by suppression of sales to the extent of about 40 per cent of the actual sales, the release said. 

The preliminary analysis of incriminating evidence indicates that the group has suppressed sales to the tune of Rs 400 crore in the last three years, it said.

Regarding the battery manufacturing business, the search team discovered incriminating evidence concerning payment of wages and purchase of raw materials in cash aggregating to Rs 110 crore which was not recorded in the account books. 

"In the case of battery manufacturing as well as lead refining concerns and its related entities, suspicious purchases exceeding Rs 40 crore from non-existent concerns have also been identified," it added.

The correlation of this evidence has also revealed that unaccounted cash so generated was being systematically invested in the acquisition of immovable properties of key persons of plywood and lead refining businesses.

The I-T Department has kept 22 bank lockers under restraint. These are yet to be operated on. Further investigations are in progress, the release said.

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