Over Rs 450 crore in undisclosed income has been recovered from raids on business premises owned by the family of Madhya Pradesh Congress MLA Nilay Daga, the Income Tax Department said Monday evening. The raids had been carried out since February 18 across 22 locations in the state’s Betul and Satna districts, as well as Mumbai and Kolkata.
The raids uncovered unaccounted cash stores of Rs 8 crore, unexplained foreign currency amounting to Rs 44 lakh and information about nine bank lockers.
The raids also uncovered messages between key members of the business group – which manufactures soya products – that reflect unexplained cash payments and hawala transactions amounting to more than Rs 15 crore.
“The group introduced unaccounted income to the tune of Rs 259 crore by way of introduction of share capital at huge premium from Kolkata-based shell companies…. introduced undisclosed income of Rs 90 crore by way of sale of paper investments in shell companies to another set of shell companies of Kolkata,” the CBDT (Central Board of Direct Taxes) said in its statement.
“None of these companies was found to be operational at given 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,” the CBDT added.
The CBDT said that a further Rs 52 crore of “bogus loss” had been claimed by the group to offset its profits, “by indulging in intra-group out-of-exchange contract settlement.
“The group has also claimed incorrect Long Term Capital Gains exemption of over Rs 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,” the statement said.
During the raids incriminating evidence in the form laptops and hard drives were confiscated.