The Income Tax (IT) department recently carried out a search and seizure operation on a real estate group at more than 40 locations in Mumbai and Surat and found undisclosed receipts and suspicious entries of nearly Rs 650 crore.
Unexplained cash of Rs 4 crore and jewellery valued at Rs 3 crore were also seized, while more than a dozen bank lockers have been placed under restraint.
The I-T department said the group is engaged in the business of construction of residential and commercial complexes, land transactions as well as real estate financing.
Incriminating documentary and digital evidence seized through the search action included a parallel set of books of account.
As per an official, the analysis of the evidence indicates unaccounted cash receipts of over Rs 300 crore for sale of flats/land; these were not found to be recorded in the regular books of account.
Unaccounted cash infusion by partners, bogus accommodation entry loans by payment of cash and unexplained cash expenses have also been noticed by the department. “Examination of books of account shows unexplained investment of over Rs 200 crore in real estate and over Rs 100 crore by loan financing,” the official said.