Income Tax Department conducted a search and seizure operation on a Pune and Thane based unicorn startup group, primarily engaged in the business of wholesale and retail of construction material on March 09
According to the official press statement, the group has a pan-India presence having an annual turnover exceeding Rs. 6,000 crore. A total of 23 premises were covered in Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh and Madhya Pradesh, in the search operation.
“A large amount of incriminating evidence in the form of hard copy documents and digital data has been found and seized during the search operations,” according to the statement.
The department said that evidence revealed that the group had booked bogus purchases, made huge unaccounted cash expenditure and obtained accommodation entries, aggregating to the tune of over Rs 400 crore.
The evidence was confronted to the Directors of the group, who admitted under oath this modus operandi, disclosed additional income of more than Rs 224 crore in various assessment years, and consequently offered to pay their due tax liability.
The search action also revealed that the group had obtained huge foreign funding via the Mauritius route, by issuing shares at exorbitantly high premiums, it said.
During the search operation, a complex hawala network of some Mumbai and Thane based shell companies was also unearthed. These shell companies exist on paper, and were created only for the purpose of providing accommodation entries, the statement added.
Preliminary analysis has revealed that the total quantum of accommodation entries provided by these shell entities exceeds Rs 1,500 crore. So far, unaccounted cash of Rs. 1 crore and jewellery of the value of Rs. 22 lakh have been seized, as per the statement.