Tax Department launched Extensive State-Wide Searches on Builder Group for Tax Evasion

Different teams of approximately 170 Income Tax inspectors conducted thorough searches on three interrelated real estate enterprises as part of a coordinated operation on Friday. The operation targeted 34 residential and commercial properties in Gujarat, with Ahmedabad accounting for 25. Gandhinagar, Mehsana, and Morbi were also on the list.

According to sources, a famous Mehsana-based real estate development group was under inspection for its projects on Vaishnodevi Circle, SP Ring Road, and SG Road. The group purportedly has multiple silent partners or investors, including political figures and paper mill owners, who are not involved in daily operations.

The searches attempted to find proof of tax evasion, such as concealed documents, valuables, and financial data. “The group’s inter-company transactions and unrecorded financial dealings are under investigation,” an official source claimed.

Preliminary investigation indicates that the developer group may have participated in unexplained transactions with silent partners. These transactions were purportedly not represented in the company’s official accounting books, raising the possibility of large-scale tax evasion.

Day one of the search operation yielded unknown results, but officials remained tight-lipped about the specifics, including recovered precious items. They did, however, suggest that the searches could last for the next 2-3 days to investigate the group’s tactics.

The ongoing probe shows the government’s focus on tax evasion in the real estate industry, which frequently involves complex financial arrangements and unrecorded transactions. The present investigation’s findings could have far-reaching consequences for other businesses under scrutiny.

As the probe continues, more information is expected to become available.