Biggest Black Money haul of 2020! Rs 1,000 crore in undisclosed foreign assets of this group detected

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Updated: January 25, 2020 7:00:38 PM

As per the statement, the group is a leading member of the hospitality industry, running a hotel abroad and a chain of luxury hotels under a prominent brand name, situated at various locations in India.

Black Money, Income Tax department, undisclosed foreign assets, Delhi-NCR, Ministry of Finance, luxury hotels, Income-tax ActAccording to the government, such foreign holdings of the main persons have remained hidden for decades beneath complex multi layered structures, located in different countries, ensuring secrecy.

The Income Tax department has detected alleged Rs 1000 crore in undisclosed foreign assets of a big hospitality group in Delhi-NCR. In an official statement on Friday, Ministry of Finance said, “Taking forward the mission of the Government against black money, particularly undisclosed foreign assets, the Income Tax Department conducted searches on 19th January, 2020, on a group which has been on their radar for having substantial undisclosed foreign assets. The operation covered 13 premises in NCR.”

As per the statement, the group is a leading member of the hospitality industry, running a hotel abroad and a chain of luxury hotels under a prominent brand name, situated at various locations in India.

The ministry further said that the search operation resulted in seizure of unaccounted assets valued at Rs. 24.93 crore (cash of Rs. 71.5 lakh, jewellery worth Rs.23 crore and expensive watches valued at Rs.1.2 crore).

“Evidence seized during the search reveals that a large amount of black money was stashed abroad by the group, through the mechanism of Trusts, formed in early 1990s in tax havens,” the ministry said.

According to the government, such foreign holdings of the main persons have remained hidden for decades beneath complex multi layered structures, located in different countries, ensuring secrecy. Search action further revealed that one of the close relatives of the promoter family was intentionally introduced as a front to ostensibly escape the provisions of domestic tax laws.

“The investigation has successfully lifted the veil, leading to detection of undisclosed foreign assets of more than Rs. 1000 crore, apart from domestic tax evasion of more than Rs. 35crore which may, inter alia, lead to consequences under the Black Money Act, 2015, as also, action under the Income-tax Act, 1961 respectively,” the statement said.

“Foreign assets include investment in a Hotel in UK, immovable properties in UK and UAE and deposits with foreign banks. Further investigations are in progress,” it added.

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