The Income Tax Department has carried out search and seizure operations on 03/12/2020 in the case of a Group involved in the manufacturing and trading of steel products having premises in and around Rourkela, Odisha.

The Group entities were booking bogus purchases of around ₹ 170 crore for two financial years in the name of 17 bogus entities. All the 17 parties have confessed in the statements recorded during the course of search and seizure operation, that they were unaware of any such business concerns in their name. It is also observed that the total amount was withdrawn in cash from the bank accounts of these bogus entities. Further, all the proprietors or directors of the bogus entities are daily wage labourers or from economically weaker sections.

Further investigations are going on.

Search and seizure operations uncover bogus purchases routed through sham entities, revealing confessions and cash withdrawals in group investigation. The Income Tax Department executed search and seizure operations in Odisha against a steel manufacturing and trading group, uncovering a scheme of bogus purchases recorded in the names of multiple entities; recorded statements show listed proprietors were unaware of such businesses and funds credited to those accounts were withdrawn in cash, with further investigations ongoing.