The search operation covered several premises located in Madhya Pradesh and Mumbai, the statement said. During the course of the search operation last month, a large number of incriminating documentary and digital evidences have been found and seized, the statement alleged.
Analysis of evidence of sand mining business revealed that the group has allegedly been indulging in tax evasion by not recording sales in the regular books of account. The comparison of actual sales as per digital evidence and accounted for sales clearly exhibits regular large-scale suppression of sales exceeding Rs. 70 crore, the department alleged.
Evidence of non-payment of royalty on such unaccounted sales has also been found. Further, a sum of more than Rs.10 crore has been found to be paid in cash by the group to other business associates, which is outside the regular books of account, the department alleged.
In the case of the sugar manufacturing business, issues pertaining to stock difference have also been detected, it said.
Evidence gathered during the search showed that some persons on behalf of the beneficial owner of the group (‘benamidar’) have been made partners in a firm doing the sand mining business and were also found to be declaring profits in their income tax returns, the department alleged.
However, the money was actually being transferred by them to the beneficial owner of the group, the statement said. During the search, one such person has admitted to being merely a salaried employee, having neither any knowledge of the affairs of the business nor having received any profits from such business, the department alleged. So far, the search action has led to seizure of undeclared assets exceeding Rs. nine crore, the department alleged.
