The Income Tax Department carried out searches on 19.10.2020 in the cases of two Government contractors having premises in Purnea, Katihar and Saharasa and a silk trader in Bhagalpur in Bihar.  The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes.

The contractors were making bogus claims of labour, transportation and fuel expenses, which were found to be not supported by any document. Further, they have been found to be withdrawing money in cash from the bank accounts of fictitious parties. Incriminating documents including signed blank cheques have been seized during the searches. In some cases, the liabilities were shown to be continuing in the books of accounts for bogus expenses. They were also maintaining undisclosed bank accounts, in which unaccounted cash was being deposited which was used for making fixed deposits, which in turn were pledged to Government departments as security for getting contracts.  Large cash withdrawals have also been noticed in these bank accounts. The assessees could not explain the purpose of these cash withdrawals. The transactions in the undisclosed bank accounts are being examined.

During the search, unaccounted cash, fixed deposits and bullion of more than ₹ 2.40 crore have been seized/restrained. In the case of the silk trader, unaccounted stock has also been detected. Evidences indicating suppression of income of about ₹ 10 crore, alongwith documents showing large unaccounted investments in immovable properties have been found and seized. These properties are in the process of being valued and attached.

Further investigations are in progress.

Searches uncover unaccounted income and undisclosed bank accounts leading to seizures and ongoing investigation into contractors and trader. Search operations targeted contractors and a silk trader after intelligence of large-scale unaccounted cash; investigators found bogus expense claims, withdrawals via fictitious parties, maintenance of undisclosed bank accounts used to create fixed deposits pledged as security for contracts, incriminating documents including blank cheques, and evidence of suppression of income; seizures of unaccounted cash, fixed deposits, bullion and unaccounted stock were made and further investigation and property valuation are ongoing.