Income Tax Department Raid on Group engaged in Textile Business; Unaccounted Cash of Rs.1.4 crore Discovered

Income Tax Department Raid on Group engaged in Textile Business; Unaccounted Cash of Rs.1.4 crore Discovered Income Tax Department carried out a search and seizure operation on 05.07.2022 on a group engaged in agro and textile business, and another group of entry operators. A total of 27 premises were covered during the search action in Mumbai and Delhi NCR. Numerous incriminating evidences, including hard copy papers and digital data, were discovered and seized during the search operation. Investigations revealed that circular trading was the primary method used to create the majority of the turnover for the main group's listed companies. The group's promoter used stock brokers to systematically manipulate the performance of several of the group's companies on the stock markets. Additionally, it has been discovered that several stock brokers received illegal payments from outside sources. The promoter and the stock brokers have both acknowledged the existence of all such irregularities. A professional who primarily works to provide lodging admissions to a number of different groups in exchange for money supports the group as well. These evidence also showed that the group had amassed a sizable sum of money by claiming to have spent over Rs. 100 crore on fictitious packaging material purchases. The business has allegedly engaged in over Rs.150 crore worth of unreported sales of agricultural and textile products. Also discovered and seized were handwritten diaries that contained cash transactions; they were properly substantiated by the testimony of some of the counterparties and beneficiaries included in the search operation. Additionally, searches were done in case there was another group involved in granting access to accommodations. This gang is suspected of running and controlling a number of businesses, including LLPs, corporations, and proprietorship concerns, through which shares and cut and polished diamonds can be bought and sold under the pretext of legitimate commerce. The group's principal members acknowledged in their sworn declaration that they had arranged cash-back unsecured loans and accommodation entries for various recipients. According to a preliminary review of a small number of years' worth of such transactions, these firms have been used to accommodate entries in the form of fictitious loans and expenses that total more than a few hundred crore. During the search operation, 1.4 crore rupees of unaccounted cash was found. Further investigations are in progress.