The Income Tax Department has found undisclosed income of more than ₹1,000 crore, and unaccounted for cash of ₹1.2 crore has been seized so far, in a search operation conducted on March 3 at two Chennai-based groups – one a leading bullion trader in Tamil Nadu and the other, one of the biggest jewellery retailers in south India.
A source, who was part of the search, said that the raids happened at Lalithaa Jewellery and Shiv Sahai and Sons, and the search operation was carried out at 27 premises located in Chennai, Mumbai, Coimbatore, Madurai, Tiruchi, Thrissur, Nellore, Jaipur and Indore.
The evidence found on the premises of the bullion trader revealed that there were unaccounted cash sales; bogus cash credits from its branches; cash credits in dummy accounts in the guise of advance for purchases; unexplained cash deposits during the demonetisation period; bogus outstanding sundry creditors and huge unexplained stock variations.
The evidence found on the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers; had given cash loans to builders and made cash investments in real estate properties; made unaccounted for gold bullion purchases; claimed wrongful bad debts; inflated wastages in conversion of old gold to fine gold and jewellery making.
Further investigations are in progress.
