IT department detects undisclosed funds of 750 cr parked overseas after raids in UP, Maharashtra, Karnataka


The Income Tax Department announced on Monday that it had conducted a search and seizure operation on September 30 at 37 premises in several cities, including Mumbai, Pune, Noida and Bangalore. These groups / individuals were in various businesses such as cable manufacturing, real estate, textiles, printing machines, hotels, logistics, etc.

During the search operation, the department said, several offending documents, loose sheets, diaries, emails and other digital evidence, etc. were discovered, indicating the ownership of a large number of foreign bank accounts and real estate, not reported to the department.

“These groups / individuals used the services of a Dubai based financial services provider to create a questionable and complex network of foreign companies and trusts based in tax havens such as Mauritius, UAE, BVI, Gibraltar, etc. . said in a press release.

The loans to the bank accounts of these groups and individuals maintained by the Dubai-based financial service provider exceed US $ 100 million (approximately ??750 crore) accumulated over a decade and turned out to be parked in bank accounts in Switzerland, the United Arab Emirates, Malaysia and several other countries, the statement said.

Evidence gathered during the search operation reveals that undisclosed funds parked overseas were used by these groups to acquire real estate in several countries such as UK, Portugal, UAE, etc. , to cover the personal expenses of promoters and their family members abroad and to channel the funds to their Indian entities.

During the search, evidence related to false payments to suppliers for generating cash, unrecorded cash expenses, hawala transactions, overbilling was also gathered. Cash and jewelry not counted for more than ??2 crore were seized from residential and commercial premises respectively. More than 50 bank records have been kept under control.

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