The Income Tax department conducted raids across 23 locations of a Pune and Thane-based unicorn startup group, primarily engaged in wholesale and retail of construction materials.
Many incriminating pieces of evidence in the form of hard copies and digital data were seized during the search operations. The evidence revealed that the group booked bogus purchases, made huge unaccounted cash expenditures and obtained accommodation entries, aggregating to the tune of over Rs 400 crore.
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The seizures were shared with the group directors, who disclosed additional income of more than Rs 224 crore in various assessment years and consequently offered to pay their due tax liability.
The group has a pan-India presence with an annual turnover of over Rs 6,000 crore. A total of 23 premises were raided across Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh and Madhya Pradesh during the search operation on March 9.
The seizures also revealed that the group had obtained huge foreign funding via Mauritius by issuing shares at exorbitantly high premiums.
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Meanwhile, a complex hawala network of some Mumbai and Thane-based shell companies was also unearthed during the search operation. These shell companies existed on paper and were created only to provide accommodation entries. A preliminary probe revealed that the total quantum of accommodation entries provided by these shell entities exceeded Rs 1,500 crore.
So far, unaccounted cash of Rs 1 crore and jewellery worth Rs 22 lakh have been seized.
Further investigations are in progress.
