Income Tax Department seized about Rs. 142 crore in cash during raids in Hyderabad

On October 6, 2021, the Income Tax Department conducted a search and seizure operation on a big pharmaceutical business situated in Hyderabad. This pharmaceutical company specialises in the production of intermediates, active pharmaceutical ingredients (APIs), and formulations. The majority of the products are sold to other countries, such as the United States, Europe, Dubai, and other African nations. The search was conducted in over 50 places across six states.

Hideouts were discovered during the searches, where a second set of books of accounts and cash were discovered. Digital media, pen drives, documents, and other incriminating evidence have been discovered and seized. Incriminating digital evidence was acquired from the assessee group’s SAP @ ERP software.

Discrepancies in purchases made from fraudulent and non-existent businesses, as well as false inflating of some expenditure categories, were discovered during these inquiries. In addition, evidence of on-time payment for land purchases was discovered. Other legal concerns were discovered, such as personal expenses being recorded in the company’s books and associated parties purchasing land for less than the government’s registration value.

Several bank lockers have been discovered throughout the investigation, with 16 of them being used. So far, the searches have resulted in the seizure of unexplained cash worth Rs. 142.87 crore. The amount of undeclared income discovered so far is expected to be around Rs 550 crore.

Further examinations and quantification of the undeclared revenue discovered are still underway.