The Income Tax department carried out a search and seizure operation at 25 premises connected with a prominent group engaged in the manufacturing of steel products, said the Ministry of Finance on Tuesday.
According to an official release, 25 premises consisting of eight residences, nine offices and eight factories, spread over Kolkata, Durgapur, Asansol and Purulia and other regions of West Bengal were covered in the operation on Friday.
"The search operation has led to the detection of a huge quantity of incriminating documents and digital evidence from different premises. Evidence pertaining to the generation of unaccounted income by the group by way of unaccounted cash sales, unaccounted cash expenditure, purchase from bogus parties, under-reporting of actual production, cash purchases of scrap, several documents of land purchases and sale among others," the release by the Finance Ministry said.
The ministry said that evidence has also been found pertaining to the utilisation of the unaccounted income in the form of unsecured loans and sale of shares of shell entities through a layering of the unaccounted income.
"A large number of property documents pertaining to one of the members of the group, showing land and property holding in different names, have also been seized. The total amount of such incriminating evidence pertaining to the manufacturing group exceeds Rs 700 crore. The operation has led to the seizure of unaccounted cash amounting to Rs 20 lakh while 2 lockers remain to be operated," it said.
During the search operation, an accommodation entry provider, who was providing entries to the searched group, was also covered.
"From his secret back office, a huge number of incriminating documents pertaining to providing accommodation entries through modes like sale of shares of shell companies, unsecured loans from shell entities, bogus billing, etc. have been found, the total amount of which runs into several hundreds of crores of rupees," said the release.
Evidence of more than 200 companies/entities having more than 200 bank accounts being managed from the entry operator's premises has been found, it added.
On the basis of preliminary examination of these documents, the Finance Ministry said it appears that these bank accounts and entities have been used as conduits to route the unaccounted income of many beneficiaries.
( With inputs from ANI )
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