I-T dept searches premises of Rajkot-based real estate firm, uncovers Rs 300 crore in undeclared income

a sign on the side of a kitchen

The Income Tax Department carried out a search and seizure operation on August 24 at the properties of a prominent real estate group based in Rajkot, Gujarat. More than 40 premises of the group were covered in the operation. The firm is engaged in real estate, construction and land trading businesses in and around Rajkot.

During the course of the search and seizure operation, many incriminating documents, loose sheets, digital evidence etc were seized indicating involvement of the group in unaccounted transactions. Substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash, has been found.

Evidence of on-money payments in real estate projects-flats, shops and land deals has also been found. Total unaccounted cash receipts in various projects of approximately Rs 350 crore have been unearthed, along with corroborative evidence.

Further, evidence related to land purchase of approximately Rs 154 crore has also been found, out of which, Rs 144 crore was purportedly paid in cash. Unaccounted cash of more than Rs 6.4 crore and jewellery amounting to Rs 1.7 crore has been seized from different premises. Furthermore, promissory notes to the tune of Rs 4 crore have also been found and seized.

Overall, the search and seizure operation has resulted in detection of concealment of income in excess of Rs 300 crore spread over various assessment years, which is likely to go up. Twenty-five lockers found during the course of the search operation have been put under prohibitory orders. The search operation is still ongoing.

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