HYDERABAD: Sleuths with the Income Tax Department reportedly seized undocumented cash amounting to Rs 142.87 crore, out of the total unaccounted income of Rs 550 crore, during the searches conducted on the offices of Hetero Drugs and its promoters on Wednesday and Thursday.
The search operation was carried out at about 50 locations in six States, including Telangana and Andhra Pradesh. Hetero Drugs, which was manufacturing two important generic drugs for treating Covid-19 patients, had allegedly witnessed a disproportionate hike in wealth and had come under the scanner of the I-T Department.It was learnt that the company’s funds were diverted and invested in real estate deals.
During these searches, issues relating to discrepancies in purchases made from bogus and non-existent entities and artificial inflation of certain heads of expenditure were detected, according to officials.Further, the evidence of on-money payment for purchase of lands was also found. Various other legal issues were also identified, such as personal expenses being booked in the company’s books, and land purchased by related parties below the government registration value, they added. During the search, several bank lockers were found, out of which 16 lockers have been opened.
The group is engaged in the business of manufacturing intermediates, Active Pharmaceutical Ingredients (APIs) and formulations. A majority of its products are exported to the US, United Arab Emirates and European countries and others.During the searches, hideouts were identified, where a second set of books of accounts and cash were reportedly found. Supposedly incriminating evidence in the form of digital media, pen drives and documents were found and seized. Digital evidence was gathered from the SAP ERP software maintained by the group. Further investigations and quantification of undisclosed income is in progress.
Hike in wealth
Hetero Drugs, which was manufacturing two important generic drugs for treating Covid-19 patients, had allegedly witnessed a disproportionate hike in wealth and had come under the scanner of the I-T Department