I-T raids on shell companies seize 52 lakh jewellery, 1.30 crore cash

The Income Tax Department started a search and survey action on November 18 in the case of a leading cattle feed producer in Northern India. The search and survey actions are being carried out at 16 locations in Kanpur, Gorakhpur, Noida, Delhi and Ludhiana.

The main allegations against the group are that it has taken accommodation entries of more than Rs. 100 crore in the form of non-genuine unsecured loans from certain Delhi-based shell companies.

During search action, it has been established that the shell companies from which loans had been taken exist only on paper.

Directors of these shell companies are dummy, non-filers and individuals of no means.

One of the Directors of these companies has been found to be a taxi driver, having 11 bank accounts, showing huge routing of funds.

Therefore, it has been established that the accommodation entries of more than Rs.121 crore in the form of unsecured loans from these shell companies are bogus and actually represent the unaccounted income of the group.

Search has revealed huge unaccounted investment in the construction of the residences of the main persons of the group. The same is under verification and will be referred for valuation.

Till now gold and diamond jewellery to the tune of Rs. 52 lakh has been seized. The source of total cash found amounting to Rs. 1.30 crore is being further verified. A total of 7 lockers have been found, which are yet to be operated.

Further investigations are going on.