I-T dept detects Rs 450 crore undisclosed income by firm owned by MP Congress MLA's kin

Nine bank lockers have also been found during the search, the Central Board of Direct Taxes, which frames policy for the tax department, said.

Published: 22nd February 2021 03:33 PM  |   Last Updated: 22nd February 2021 09:14 PM   |  A+A-

Rs 2000, cash,money

For representational purposes. (Photo | PTI)

By Express News Service

BHOPAL: The searches by I-T sleuths at the premises of a business group owned by an MP Congress MLA’s family have unearthed undisclosed income of over Rs 450 crore. 

The searches and associated investigations have also led to evidence, including chats among key persons of the business group, that reflect unexplained cash payment and hawala transactions of over Rs 15 crore.

The searches had been continuing since February 18 at 22 premises of the Betul-based Soya products manufacturing group at Betul and Satna (in MP), Mumbai and Solapur, and Kolkata.

The business group is reportedly owned by the family of Congress MLA from MP’s Betul seat Nilay Daga.

According to official information released by the Central Board of Direct Taxes (CBDT), incriminating evidence in the form of digital media such as laptops, hard drives, pen drives, etc have been found and seized. From the investigations so far, undisclosed income of over Rs 450 crore has been detected.  

Also, during the course of the search operation, unexplained cash of over Rs 8 crore and unexplained foreign currency of various countries amounting to more than Rs 44 lakh was seized. As many as nine bank lockers were also found during the search.

As per the CBDT’s official statement, the group has introduced unaccounted income to the tune of Rs 259 crore by way of the introduction of the share capital at a huge premium from Kolkata-based shell companies. The group has also introduced an undisclosed income of Rs 90 crore in its books of accounts by way of the sale of paper investments in shell companies to another set of shell companies in Kolkata. 

Surprisingly, none of the companies was found to be operational at their shown address and the group could not confirm the identity of such paper companies or any of its directors. Many of these paper companies were found to be struck off by the Ministry of Corporate Affairs. 

During the search, it was seen that bogus loss to the tune of Rs 52 crore has been claimed by the group to suppress their profits, by indulging in an intra-group out-of-exchange contract settlement. Various companies were formed in the name of employees to carry out these transactions, while there was no actual business carried out between them. Directors of these companies were not aware about any such transactions. 

The group has also claimed incorrect Long Term Capital Gains exemption of over R 27 crore on sale of shares of a group entity. Investigations revealed that the purchase of these shares was not genuine as group directors purchased shares of this entity at nominal value from non-existent Kolkata-based shell companies. 

Various types of evidence including chats among key persons of the group reflect unexplained Cash reflected unexplained cash payment and hawala transactions of over Rs 15 crore.


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