GST Department detects Rs 10 crore Unaccounted cash, turnover of Rs 1,764 cr in toilet-sized office

The state’s Goods and Services Tax (GST) and Income Tax (I-T) investigation wing seized Unaccounted cash, 19 kg silver Bricks Worth Rs 10 crore stashed in secret compartments on the floor and a wall of a bullion trader’s 35 sq ft office in Kalbadevi. Chamunda Bullion is suspected of being involved in fraudulent input tax credit claims and hawala.

During a recent audit of suspicious company transactions, state GST officials targeted Chamunda Bullion company’s gross turnover suddenly shot up from Rs 22.83 lakhs in 2019-2020, to Rs 652 crore the next year (2020-2021), and upto an astronomical Rs 1,764 crore the following (2021-2022) year.

On Wednesday, they raided the company’s three locations, including the Kalbadevi office. Initially, they discovered nothing in the 35 sq ft space. After a thorough search, they discovered something strange about a floor tile in a corner of the room. They used a screwdriver to pry it open and discovered gunny bags full of cash stuffed in a cavity beneath the floor.

Because the owner of the bullion company’s office and his family denied any knowledge of the cash and silver bricks, the location was sealed by the state GST department, and the facts of the seizure were communicated to the I-T department, which joined in the search. Further investigation of the office resulted in the discovery of a hidden cabinet in one of the walls, also containing bags of money.

According to sources, it took I-T officials six hours to count the money, which was completed in the early hours of Thursday. The unaccounted cash and silver bricks were seized under the Income-Tax Act.

While the I-T department will look into the source of the cash and valuables, the investigation into GST suppression will be handled by the state GST, which will be overseen by Rahul Dwivedi (IAS), joint commissioner of state tax.

Meanwhile, tax payer applied to the Mumbai Sessions Court for anticipatory bail in order to avoid arrest by the State GST Department.

The State GST has stated that it will investigate the suppression of GST, while the IT will now investigate the source of the unexplained cash and valuables recovered from the small office, as well as other related issues.