On October 5, Tuesday, a search and seizure operation was conducted across several cities in the states of Assam, Meghalaya, and West Bengal, in connection to two groups by the Income Tax Department.
15 premises possessed by these two groups were searched which were located in Kolkata, Guwahati, Rangia, Shillong, and Patna.
Out-of-book sales and shell companies
One of the two groups is said to be involved in cement production. During the interrogation, it was discovered that the gang was making out-of-books sales and claiming fictitious expenses in order to create unaccounted cash.
The group made use of shell companies to get the money back into the business. It was later discovered that several paper companies were supposedly run by the group to make sure that accommodation entries are provided to its flagship concerns.
Although, when the Income Tax Department paid a visit to those addresses, the companies were revealed to be non-existent.
Amount worth Rs 50 crores lost
An amount as big as Rs 50 crores was disclosed to have been lost which were obtained with the help of fake loans, false commissions paid and false share premium received by shell companies.
Tribal individual creditors were unjustly shown to have accounted for about Rs. 38 crores. During the search procedure, many offshore entities or bank accounts that have not been declared in the relevant returns of income were revealed.
Crores of rupees involved in sale of land properties
The second group is said to have been engaged in railway contracts in Assam, Mizoram, and other parts of North-East.
The Income Tax Department recovered and seized incriminating documents, loose sheets, and digital evidence from them.
As per the evidence that was discovered revealed investments in land and properties with a value that exceeds Rs. 110 crores.
Moreover, documents suggesting cash transactions of more than Rs. 13 crores involving the sale of land properties were recovered.