Income Tax authorities confiscate Rs 94 crore in cash and valuables during multi-state raids
New Delhi, October 16: In a significant development, the Income Tax department has successfully seized a staggering amount of assets during a series of raids on government contractors and real estate developers in Karnataka, along with other states. These coordinated searches, which commenced on October 12, spanned across 55 premises in various cities, including Bengaluru, Telangana, Andhra Pradesh, and Delhi.
The Central Board of Direct Taxes (CBDT) has released a statement revealing the astounding results of these raids. A total of Rs 94 crore in unaccounted cash was seized, alongside gold and diamond jewelry with an estimated worth of over Rs 8 crore. Furthermore, the raids unearthed a collection of approximately 30 luxury wristwatches of foreign make, discovered in the possession of a private salaried employee.
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While the statement did not specify the entities involved, the substantial cache of assets seized demonstrates the scale of the operation. The Income Tax department was able to uncover substantial evidence in the form of loose sheets, hard copies of documents, and digital data during the searches. This evidence suggests that the targeted contractors were engaged in various forms of tax evasion, primarily by inflating expenses through the fabrication of purchases, false expense claims, and unjustified expenditures with sub-contractors. These actions have contributed to the generation of a significant amount of unaccounted cash and undisclosed assets.
The modus operandi employed by these contractors in their alleged tax evasion efforts was further exposed through discrepancies in goods receipt note (GRN) validation, as well as substantial irregularities in documentation related to purchases and the actual transport of goods. The CBDT also revealed that these contractors had been booking expenses for non-business purposes, further deepening the controversy.
The raids have sparked a political dispute, with Karnataka's ruling Congress party and the opposition BJP engaging in a war of words over the source and affiliations of the unaccounted cash. The BJP state president, Nalin Kumar Kateel, has linked the money to the Congress, while Chief Minister Siddaramaiah has vehemently denied any such association.
The CBDT, which formulates policies for the Income Tax department, is expected to further investigate and take legal actions in light of the substantial seizures and the evidence of alleged tax evasion.
- With inputs from agencies
