A total of 31 premises were searched spread across Kanpur, Noida, Ghaziabad, Delhi, and Kolkata after the Income Tax Department carried out a search action on Thursday on a Kanpur and Delhi-based large group in the business of producing Pan Masala and real estate.
According to the Central Board of Direct Taxes (CBDT), the group has been earning huge amounts through the unaccounted sales of Pan Masala and the real estate business. This unaccounted income was laundered back into the concerns through a vast link of shell companies.
During the search digital and paper evidence found, revealed a nationwide network of such paper companies created by the group. The Directors of these companies are people of no financial means. While some of these persons are not even filing income tax returns, some others who file returns, do of extremely inadequate amounts. Field investigations further revealed that these paper companies did not exist at the addresses mentioned and never conducted any business.
"However, surprisingly these companies advanced so-called loans and advances to the real estate group amounting to Rs 226 crore in just three years. A network of 115 such shell companies has been found. Forensic analysis of the digital data is in progress. The main 'directors' also admitted that they were only 'dummy directors' and signed on the dotted lines as and when required in return for a commission for their 'services," the release read.
During the search, the income tax teams also discovered secret hideouts where troves of documents containing details of unaccounted money and their process of laundering have been unearthed. Analysis of such documents and evidence is also underway. The complete modus operandi has been uncovered by the team including the role of 'cash handlers' and their details. The modus-operandi is similar with respect to the business of Pan Masala.
They too have laundered back their unaccounted income through an extensive network of such shell companies. Unaccounted loans and premia received from such paper companies exceeding Rs. 110 crore in three years has been detected. The group plowed back their unaccounted money through such shell companies by showing bogus advances against property sale, bogus loans, and share premia. According to the forensic analysis of evidence is in progress. "So far 34 bogus bank accounts of shell companies have been found. Deductions claimed under Income-tax Act, 1961 with respect to the treatment of biodegradable waste are under detailed scrutiny. It has also been discovered that through some of these paper companies based in Kolkata, bogus sale and purchase of manure has been shown, amounting to Rs. 80 crore so that cash can be deposited into bank accounts," stated in the release.
According to the official spokesperson, CBDT that "During the search, cash of more than Rs. 52 lakh was found along with more than seven kg gold. Preliminary figures indicate unaccounted transactions exceeding Rs. 400 crore."
Further investigations are in progress.
( With inputs from ANI )
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