Income Tax officials, in a concerted effort, embarked on a comprehensive 6-day raid targeting establishments associated with four prominent Noida-based construction groups, namely Bhutani Infra, Group 108, Advent, and Logix. This investigative operation, executed by 40 teams comprising a substantial workforce of 250 officials, was initiated in response to allegations of tax evasion by the aforementioned construction entities.
Upon the culmination of the extensive 6-day search across various locations tied to these construction groups, the Income Tax (I-T) officials successfully unearthed unaccounted cash exceeding the staggering sum of Rs 1,500 crore. This substantial recovery underscores the magnitude of the financial irregularities that had been under scrutiny.
The operation, officially dubbed 'Mahakal' by the Income Tax department, primarily focused on addressing instances of tax evasion associated with the sale of commercial spaces by the targeted construction companies. Additionally, the scope of the investigation extended to two broker companies, bringing them under the purview of the meticulous search and seizure activities.
Notably, during the operation, I-T officials stumbled upon two concealed pen drives, ingeniously hidden by employees of the Bhutani Group. These pen drives contained crucial information shedding light on the substantial influx of cash into the company. Specifically, financial data gleaned from these devices revealed that the Bhutani Group had received a noteworthy cash inflow amounting to Rs 429 crore in the financial years 2019-20, 2020-21, and 2021-22. More startlingly, the data exposed an unaccounted-for cash acceptance totaling Rs 595 crore from the fiscal year 2019-20 to the present.
Furthermore, as part of the investigative process, statements were recorded from employees of the Bhutani Group. In these statements, key individuals within the organization acknowledged the acceptance of cash components in various group transactions. Notably, the group was found to be offering 'Assured Cash Return' and 'Brokerage in Cash' schemes to both investors and brokers.
The crux of the tax evasion activities revolved around the 'Assured Cash Return' scheme, a scheme that lured investors with promises of monthly payments toward the cost of space, ensuring them a substantial return until possession. This scheme, as per Securities and Exchange Board of India (SEBI) guidelines, is deemed legal. However, the investigation brought to light its misuse for the purposes of tax evasion, as evidenced by the terms outlined in the agreements. Investors were cautioned against participating in such schemes to avoid potential legal consequences. The intricate details of the operation underscore the multifaceted nature of financial irregularities and tax evasion that were the focus of the Income Tax Department's scrutiny.
