The Income Tax Department conducted Search and Seizure operation on 29.07.2019 on a prominent group involved in Real Estate Development, covering more than 40 premises across Mumbai and Pune.  During the course of search operations, the Department unearthed evidences related to receipt of ‘On Money’ on sale of commercial and residential blocks, bogus unsecured loans taken, bogus Long Term Capital Gains and various other sham transactions to evade income aggregating to about ₹ 700 crore.

The search action has unravelled peculiar transactions wherein by way of accounting jugglery, income on transactions worth about ₹ 525 crore has been evaded.  ‘On Money’ receipt on sale of Residential / Commercial Blocks amounting to ₹ 100 crore has been corroborated during the search. During the search, incriminating evidence was unearthed pertaining to modus operandi establishing the introduction of accommodation loans by the group, which have been found to be bogus.  Moreover, use of entry providers / hawala operators for entries of Long Term Capital Gains by the promoters of this real estate group have been affirmed during the search action.  The action has also resulted into detection of jewellery worth approximately ₹ 14 crore, which is under verification.

The investigation and search action is still in progress.

Tax evasion through 'on money' and bogus accommodation loans exposed; investigation into hawala entries and concealed income continues. Search and seizure uncovered systemic tax evasion by a major real estate group through corroborated receipts of 'on money', accounting manipulations concealing income, bogus unsecured accommodation loans, and artificial long term capital gains entries routed via entry providers/hawala operators; significant unaccounted jewellery was also detected and verification and investigation continue.