The Income Tax Department carried out searches on 04.03.2021 in the case of two Chennai based groups, one of which is a leading bullion trader in Tamil Nadu and the other is one of the biggest jewellery retailers in South India. The search operation was carried out at 27 premises located in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Trissur, Nellore, Jaipur and Indore.

The evidences found in the premises of the bullion trader revealed that there were unaccounted cash sales; bogus cash credits from its branches; cash credits in dummy accounts in the guise of advance for purchases; unexplained cash deposits during the demonetization period; bogus outstanding sundry creditors; and huge unexplained stock variations.

The evidences found in the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers; had given cash loans to builders and made cash investments in real estate properties; made unaccounted gold bullion purchases; claimed wrongful bad debts; inflated wastages in conversion of old gold to fine gold and jewellery making, etc.

The searches, so far, have resulted in the detection of undisclosed income of more than ₹ 1,000 crore. Unaccounted cash of ₹ 1.2 crore has been seized so far.

Further investigations are in progress.

Tax searches uncover systemic undisclosed income and cash seizures, prompting expanded forensic tax investigations and asset verification. Searches of two Chennai based groups uncovered unaccounted cash sales, bogus branch cash credits, dummy account credits, unexplained demonetization deposits, fabricated creditors and stock variances in a bullion trader; and cash loans from financiers, cash loans to builders, cash real estate investments, unaccounted gold purchases, wrongful bad debt claims and inflated wastage in a jewellery retailer, leading to detection of substantial undisclosed income and seizure of unaccounted cash with further investigations ongoing.