The Income Tax (I-T) Department has conducted searches on a group of four major steel rolling mills based at Jalna in Maharashtra, which is suspected to have amassed unaccounted income exceeding ₹300 crore.
“These companies are engaged in the business of manufacturing steel TMT bars and billets, mostly using steel scrap as raw material. The operation was conducted on more than 32 premises spread across Jalna, Aurangabad, Pune, Mumbai and Kolkata,” said the agency.
During the searches, the agency seized evidence indicating that the companies were involved in large-scale unaccounted financial transactions made outside the regular books of accounts, including inflation of purchases using entry providers, unaccounted cash expenses and investments. The funds were laundered in the guise of share premiums and unsecured loans using shell entities.
According to the agency, unaccounted purchases to the tune of ₹200 crore have been detected. A huge quantity of unaccounted stock was also found on the factory premises of the companies. While 12 bank lockers were identified, the agency seized ₹2.10 crore in cash and jewellery worth ₹1.07 crore from different locations.
“The four companies have already disclosed additional income to the extent of ₹71 crore consequent to the search,” it said.
