Rs 150 Crore in Unaccounted Transactions Exposed as Gujarat Firms Raided by Income Tax Authorities

Income tax officials have conducted raids across Gujarat, revealing Rs 150 crore in unaccounted transactions, according to reliable sources. Investigations, which began on October 23, also led to the seizure of Rs 3 crore in cash and jewellery.

Over ten bank accounts linked to two major business entities the Ratnam Group and the Nyalkaran Group—have been sealed as part of the investigation. Findings from the raids indicated that both groups were allegedly involved in money laundering activities. Evidence shows complex financial maneuvers, including the operation of shell companies that reportedly inflated share capital premiums to disguise financial transactions. The Income Tax Department has uncovered numerous documents that support the existence of these unaccounted transactions.

Tax officers recently conducted additional raids targeting two firms in Rajkot: Industrial Private Limited and Kame Color Cell Private Limited. During these raids, officials reportedly seized more than Rs 8 crore in cash. Both companies operate in Morbi and Rajkot, with the Morbi units primarily engaged in producing machinery for tile manufacturing and dye production, while another unit handles graphic printing.

Large-Scale Goods and Services Tax Evasion

The companies under investigation are also suspected of significant Goods and Services Tax (GST) evasion. As a result, the Directorate General of GST Intelligence has launched an inquiry to assess the extent of GST-related violations. Both the income tax and GST investigations are ongoing, as authorities delve deeper into the suspected large-scale tax evasion across these businesses.