I-T raids in Delhi-Mumbai, Rs 1.4 cr cash seized

Insight Online News

New Delhi, July 26 : The Income Tax Department has carried out a search and seizure operation on a group engaged in agro and textile business, and another group of entry operators and claimed to have seized Rs 1.4 crore in cash.

A total of 27 premises were covered during the search action conducted on July 5, in Mumbai and Delhi NCR, an official statement said on Tuesday.

During the course of the search operation, a large number of incriminating evidences in the form of hard copy documents and digital data were found and seized, the statement said.

It was found during investigation that most of the turnover of the listed companies of the main group was allegedly generated through circular trading.

The promoter of the group was allegedly involved in systematic manipulation of performance of certain group companies on stock markets, with the help of stock brokers.

”Several instances of out of books payment to some stock brokers for unlawful purposes, have also been found. All such irregularities have been admitted by both, the promoter and the stock brokers. The group is also supported by a professional person, who is primarily engaged in providing accommodation entries to several other groups, in exchange of cash,” the statement said.

”The evidences also revealed that the group has generated huge amount of cash through claiming bogus purchases of various materials including packing material of more than Rs. 100 crore. Moreover, the group has also indulged in unaccounted sales of agro and textile items over Rs. 150 crore. Handwritten diaries containing cash transactions have also been found and seized, which have been duly corroborated by statements of some of the counterparties/beneficiaries covered under the search action,” it added.

Another group was found to be allegedly operating and controlling various concerns including LLPs, companies and proprietorship concerns through which accommodation entry of sale and purchase of cut and polished diamond as well as shares are given in the guise of genuine business.

”The main persons of the group have admitted in their statement under oath, about arranging accommodation entries pertaining to expenses and unsecured loans for various beneficiaries, against cash,” the statement said.

”A preliminary analysis of a few years of such transactions shows that accommodation entries in the nature of bogus loans and expenses exceeding a few hundred crore have been provided through these entities,” it added.


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