Unaccounted income over Rs 2000 cr detected in raids at prominent Infra groups, claims I-T Dept

New Delhi [India], Feb 13 (ANI): The Income Tax Department claimed on Thursday to have detected unaccounted income of over Rs 2000 crore in searches conducted by it at more than 40 premises located at Hyderabad, Vijayawada, Cuddapah, Vishakhapatnam, Delhi and Pune on February 6.
The department seized unexplained cash of Rs. 85 lakh and jewellery worth Rs 71 lakh while more than 25 bank lockers have been restrained by it.
"The search action included three prominent infrastructure groups based in Andhra Pradesh and Telangana. Investigations led to busting of a major racket of cash generation through bogus sub-contractors, over-invoicing and bogus billing," said a press release from CBDT.
The search operations revealed that Infrastructure companies had sub-contracted work to several non-existent/bogus entities, claims the department.
"Preliminary estimates suggest siphoning of more than Rs. 2000 crore through transactions that were layered through multiple entities with the last in the chain being small entities with turnover less than Rs. 2 crores to avoid maintenance of books of accounts and tax audits etc," it read.
"Several incriminating documents and loose papers were found and seized during the search, apart from emails, WhatsApp messages and unexplained foreign transactions unearthed during the search. Search operation was also carried out on close associates including ex-personal secretary of a prominent person and incriminating evidence seized," it added.
FDI receipts of several crores in the group companies of one of the Infrastructure companies is suspected to be round-tripping of its unaccounted funds, claims CBDT (ANI)