The Income Tax Department has carried out a search and seizure operation on July 5 on a group engaged in agro and textile business, and another group of entry operators for alleged tax evasion.
A total of 27 premises were covered during the search action in Mumbai and Delhi NCR, it said in a statement.
“It was found during investigation that most of the turnover of the listed companies of the main group has been generated through circular trading. The promoter of the group was involved in systematic manipulation of performance of certain group companies on stock markets, with the help of stock brokers,” the department said.
Several instances of out of books payment to some stock brokers for unlawful purposes, have also been found. All such irregularities have been admitted by both, the promoter and the stock brokers.
These evidences also revealed that the group has generated huge amount of cash through claiming bogus purchases of various materials including packing material of more than Rs 100 crore. Moreover, the group has also indulged in unaccounted sales of agro and textile items over Rs 150 crore.
Searches were also conducted in case of another group which is involved in providing accommodation entry. This group is found to be operating and controlling various concerns including LLPs, companies and proprietorship concerns through which accommodation entry of sale and purchase of cut and polished diamond as well as shares are given in the guise of genuine business.
Unaccounted cash of Rs 1.4 crore has been seized during the search operation.