"Oberoi used to charge service tax for the projects he undertook, but never remitted the money (to the Service Tax Department). He did not even register himself with the department," said a source.
Deputy Commissioner of Service Tax Sameer Wankhade confirmed the development, but divulged no further details.
The source said the department suspects Oberoi might have evaded tax of about Rs 50 lakh.
"Interestingly it was only yesterday that he took a registration from us, as we conducted searches at his premises," said the source.