Income Tax Department carried out search and seizure operation on 18.02.2021 at 22 premises of a Betul based Soya products manufacturing group at Betul and Satna in M.P., Mumbai and Solapur in Maharashtra and Kolkata.

During the course of the search operation, unexplained cash of over ₹ 8 crore and unexplained foreign currency of various countries amounting to more than ₹ 44 lakh have been seized. 9 bank lockers have also been found during the search.

The group has introduced unaccounted income to the tune of ₹ 259 crore by way of introduction of Share capital at huge premium from Kolkata based shell companies.

The group has also introduced undisclosed income of ₹ 90 crore in its books of accounts by way of sale of paper investments in shell companies to another set of shell companies of Kolkata. None of the companies was found to be operational at their shown address and the group could not confirm the identity of such paper companies or any of its Directors. Many of these paper companies were found to be struck off by the Ministry of Corporate Affairs.

During the search, it was seen that bogus loss to the tune of ₹ 52 crore has been claimed by the group to suppress their profits, by indulging in intra-group out-of-exchange contract settlement. Various companies were formed in the name of employees to carry out these transactions, while there was no actual business carried out between them. Directors of these companies were not aware about any such transactions.

The group has also claimed incorrect Long Term Capital Gains exemption of over ₹ 27 crore on sale of shares of a group entity. Investigations revealed that the purchase of these shares was not genuine as group directors purchased shares of this entity at nominal value from non-existent Kolkata based shell companies. Various types of evidence including chats among key persons of the group reflects unexplained Cash payment and hawala transactions of over ₹ 15 crore.

Incriminating evidence in the form of digital media such as Laptops, hard drives, pen drives etc have been found and seized. From the investigation so far, undisclosed income over ₹ 450 crore has been detected.

Further investigations are in progress.

Search and seizure uncovers use of shell companies and paper transactions to introduce and conceal undisclosed income. Search and seizure operations at the group's premises seized unexplained cash, foreign currency, bank lockers and digital devices, and revealed use of non-operational shell companies to introduce and record undisclosed income through share capital at premium and sales of paper investments. Investigations also uncovered intra-group out-of-exchange settlements to claim bogus losses, misuse of Long Term Capital Gains exemptions via non-genuine share purchases, and evidence of cash and hawala payments; further inquiry is continuing.