By Our Correspondent
NEW DELHI: A search action was started by the Income Tax Department in the case of a Bijnor based group engaged in real estate business and it’s associates. There were allegations that the group companies were having huge security premium reserves and massive liabilities in the form of loans and advances from related parties/others and other payables, even then they had advanced substantial loans to others. The sales of the group were not commensurate with the loans and advances shown.
During the search unexplained cash of more than Rs. 50 lakhand unexplained jewellery weighing approximately 2.5 kg has been found, so far.The allegations regarding share premium have been found to be correct during the search. They are not commensurate with the income of the concerned shareholders, who could not explain their sources.
During the search, more than 20 companies were found to be running from a single premise out of which many companies are dummy companies and do not show any operations. Companies are not having any worth but are showing significant amounts of share premium. The dummy companies are being used as conduit for layering of funds.
One of the group members has financial interest in one UK based foreign company and one property in London, the sources of investment therein are being examined. Apart from this, incriminating documents relating to investments in many properties have also been recovered from several premises and the same are being investigated. The sources of investment in properties owned by the group are being verified. Hand-writtenpapers relating to certain payments/receipts have also been found during the search and are being examined.So far 6 bank lockers have been found and further investigations are going on.
The Income Tax Department has also carried out searches at 22 premises in Coimbatore, Erode, Chennai and Namakkal on a group engaged in the running of Educational Institutions and their associates, including a civil contractor. The search was carried out on the basis of information that fees collected from students were not fully accounted for in the regular books of accounts.
Evidences found during the search reveal that the allegations regarding suppression of fees received are true and the unaccounted receipts are siphoned off to the personal accounts of the trustees, which in turn are invested in real estate through a company. The other shareholders of the company, viz., an architect from Tirupur and a textile businessman were also covered. Electronic devices seized during the course of search are being examined.
During the searches in the case of the civil contractors from Namakkal, inflation of expenditure by booking bogus expenses under labour charges, material purchase, etc. has been found.
The search has led to identification of unaccounted investments and on-money payments to the extent of around Rs.150 crore. Cash amounting to Rs. 5 crore has been seized. Some lockers are yet to be operated. Search is still continuing.
