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Tax raids on Mumbai developer unearth ₹700 crore in black money

Our Bureau Mumbai | Updated on August 02, 2019 Published on August 02, 2019

The Income-Tax Department has raided several offices of a Mumbai-based real estate developer, recovering evidence to evade income of about ₹700 crore.

The raids, which took place on July 29, were part of a search-and-seizure operation on a prominent group involved in real estate development, covering more than 40 premises across Mumbai and Pune, the department said in a statement. The name of the developer was not disclosed.

Sham transactions

“During the course of search operations, the department unearthed evidences related to the receipt of ‘on money’ on sale of commercial and residential blocks, bogus unsecured loans taken, bogus long-term capital gains and various other sham transactions to evade income aggregating to about ₹700 crore,” said the statement.

The search unravelled peculiar transactions wherein, by way of accounting jugglery, income on transactions worth about ₹525 crore had been evaded, it added.

‘On money’ receipt on the sale of residential/commercial blocks amounting to ₹100 crore was corroborated during the search.

Incriminating evidence was also unearthed pertaining to modus operandi establishing the introduction of accommodation loans by the group, which were found to be bogus.

Moreover, the use of entry providers/hawala operators for entries of long-term capital gains by the promoters of the real estate group was affirmed during the search.

Jewellery worth approximately ₹14 crore was also detected, which is under verification. The investigation and search are still in progress.

Published on August 02, 2019
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