During the operation, which was launched on November 18, searches had been carried out at 16 places in Delhi, Kanpur, Gorakhpur, Noida and Ludhiana
The Income-Tax Department has performed a search and survey operation towards a number one cattle feed producer in North India, on the suspicion that it took “accommodation entries” of over ₹ 121 crore from some Delhi-based shell entities.
Accommodation entry is a modus operandi of routing massive quantities of cash normally by way of the banking channel, utilizing shell firms, and proven as official revenue by making faux transaction entries, together with unsecured loans and infusion of share capital.
During the operation, which was launched on November 18, searches had been carried out at 16 places in Delhi, Kanpur, Gorakhpur, Noida and Ludhiana.
Gold and diamond jewelry price ₹ 52 lakh have been seized thus far. The monetary path pertaining to the remaining jewelery and the sources of ₹ 1.30 crore in money discovered throughout the searches are being verified. A complete of seven lockers have been recognized.
The Income-Tax Department alleged that the group took “accommodation entries” on the pretext of unsecured loans, had an unusually excessive sundry collectors and it suppressed its web revenue.
A associated group chit-fund firm had acquired unsecured loans of a number of crores of rupees from unknown sources, as alleged.
During searches, the division discovered proof, purportedly contemplating that the shell firms, from which loans had been taken, existed solely on paper and had no actual enterprise and creditworthiness.
“Directors of those shell firms are dummy, non-filers and people of no means. One of the administrators of those firms has been discovered to be a taxi-driver, having 11 financial institution accounts, exhibiting enormous routing of funds, “said the department in a statement on Friday.
One shell entity was a chit subscriber in the group’s chit fund concern, which was a violation of the provisions of the chit funds act, said the department.
Searches also revealed huge unaccounted investments in the construction of the residences of the key persons of the group. “The identical is beneath verification and will probably be referred to valuation”, it stated.