The Central Board of Direct Taxes (CBDT) on Saturday claimed to have detected “fictitious transactions” of Rs 2,200 crore after the Income Tax Department carried out multi-city raids towards the Dainik Bhaskar media group early this week.
It stated the searches that have been launched on July 22 in 9 cities like Bhopal, Indore, Delhi, Ahmedabad, Noida and a few others are “continuing and further investigations are in progress.”
“The voluminous material found during the search operations is being examined,” the CBDT assertion issued right here stated. The CBDT frames coverage for the IT Department.
While the assertion didn’t title the group, official sources recognized it to be the Bhopal headquartered Dainik Bhaskar group which is concerned in numerous enterprise sectors like media, energy, textiles and actual property with a bunch turnover of greater than Rs 6,000 crore every year.
“Cyclical buying and selling and switch of funds amongst group firms engaged in unrelated companies to the tune of Rs 2,200 crore has been discovered.
“The enquiries have confirmed that these have been fictitious transactions without any actual movement or delivery of goods. The tax effect and violation of other laws are being examined,” the assertion alleged.
The media group, on the day of the raids, had posted a message on its web site saying the federal government was petrified of its true journalism.
From our bodies in river Ganga to Corona deaths, the group that introduced the true numbers in entrance of the nation is being raided by the federal government, it alleged in a message in Hindi.
“I am independent because I am Bhaskar, Only the readers’ will matters in Bhaskar,” it had stated.
The CBDT assertion alleged that the group has greater than 100 firms together with the holding and subsidiary firms and that they’ve been working a number of firms within the names of their workers which have been used for reserving “bogus” bills and routing of funds.
From our bodies in river Ganga to Corona deaths, the group that introduced the true numbers in entrance of the nation is being raided by the federal government, the group alleged in a message in Hindi. Human corpses float to the Ganga’s floor in Bihar’s Buxar district. (Photo courtesy: Amar Nath Tiwari/Unexplored Adventure)
“During the search, a number of of the workers, whose names have been used as shareholders and administrators, have admitted that they weren’t conscious of such firms and had given their Aadhaar card and digital signature to the employer in good religion.
“Some were found to be relatives, who had willingly and knowingly signed the papers but had no knowledge or control of the business activities of the companies, in which they were supposed to be directors and shareholders,” the CBDT claimed.
Such firms, it alleged, have been used for a number of functions like “booking bogus expenses” and “siphoning off” the earnings from listed firms, routing of funds so siphoned into their carefully held firms to make investments, making of round transactions and so forth.
“The nature of such bogus expenditures booked fluctuate from provide of manpower, transport, logistics and civil works and fictitious commerce payables.
“The quantum of income escapement using this modus operandi, detected so far, amounts to Rs 700 crore spread over a period of six years,” it claimed.
However, the quantum could also be extra because the group has used a number of layers and investigations are being carried out to unravel your complete cash path, it added.
The assertion stated the tax division is probing the violation of sure sections of the Companies Act and Clause 49 of the Listing Agreement prescribed by SEBI for listed firms on this case.
“Application of Benami Transaction Prohibition Act will also be examined,” it stated. The CBDT stated the true property entity of the group is working a mall and had been sanctioned a time period mortgage of Rs 597 crore from a nationalised financial institution.
“Out of this, an amount of Rs 408 crore has been diverted to a sister concern as a loan at a low interest rate of one percent.”
“While the real estate company has been claiming expenses of interest from its taxable profit, it has been diverted for personal investments of the holding company,” it alleged.
The listed media firm “does barter deals” for commercial revenues, whereby immovable properties are obtained instead of precise funds, it stated.
“Evidences have been found indicating cash receipts in respect of the subsequent sale of such properties. This is under further examination,” the assertion stated.
The CBDT stated “evidences” discovered through the raids point out receipt of on-money in money, on sale of flats by the realty arm of the group.
“The same has been confirmed by two employees and a director of the company.”
“The modus operandi as well as the corroborating documents have been found. The exact amount of out-of-books cash receipts are being quantified,” it stated.
The tax officers discovered a complete of 26 lockers within the residential premises of the promoters and key workers of the group, that are being operated, it stated.