A search and seizure action undertaken on a solar power firm has led to the detection of tax evasion of more than Rs 1,350 crore, the Central Board of Direct Taxes (CBDT) said on Monday.
The Delhi unit of the Directorate General of Income-Tax (Investigation) initiated search and seizure action on the group in NCR, Bhopal, Indore, and Goa, based on credible information of large scale collection, possession and movement of unaccounted assets, a few weeks back.
During the search, the CBDT, in a statement issued on Monday, said that a maze of shell companies used as mere conduits for providing entries to the group were detected, and accommodation entries in the garb of bogus unsecured loans/share application money to the tune of Rs 370 crore were found.
CBDT mentioned that evidence of inflation of expenses through bogus billing to the tune of around Rs 330 crore was detected in the case of a power plant of the said group. The money siphoned off was collected in USD through hawala operators, it added.
Furthermore, a handwritten diary containing records of out of books cash receipts to the tune of around Rs 240 crore was seized from the office of the group. The entries therein have been admitted by the persons concerned, the CBDT said in its statement.
Investigations revealed that a loan entry of Rs 30 crore in one of the group companies was an accommodation entry arranged by an entry operator against equivalent cash. Moreover, evidence was found indicating that the group "grossly over-invoiced its imports" from original manufacturers by re-invoicing it through a shell company of a person who is an accused in a major defence scam. The surplus so created was plowed back in the books as FDI through another shell company of the same person, the CBDT said.
The investigation also revealed that the group used the services of a Dubai- based operator to park unaccounted foreign remittances in overseas jurisdictions. Out of such remittances, approximately Rs 27 crore was paid towards credit card expenses and Rs 72 crore for purchase of a property abroad, it mentioned.
The CBDT also said that unaccounted payment of Rs 9 crore towards the purchase of a property was detected, while unaccounted assets worth Rs 3 crore was seized during the search.
Disclaimer: No Business Standard Journalist was involved in creation of this content
