The Income Tax Department initiated search and seizure operation on 03.12.2021 on a prominent group of Surat, engaged in the business of construction of residential and commercial complexes, land transactions as well as real estate financing. The search action covered more than 40 premises spread over Surat and Mumbai.

During the course of the search action, various incriminating documentary and digital evidences have been found and seized including a parallel set of books of account in the case of group entities. The transactions of certain group entities have been found to be maintained in a highly coded manner but were successfully decoded by the search team.  A preliminary analysis of these evidences indicates unaccounted cash receipt of on- money of more than ₹ 300 crore on sale of flats / land which is not found recorded in the regular books of account. Evidences of unaccounted cash infusion by partners, bogus accommodation entry loans by payment of cash and unexplained cash expenses etc. have also been noticed. Further, deeper examination of physical books of account and incriminating evidences seized during the search action shows unexplained investments of more than ₹ 200 crore in real estate and more than ₹ 100 crore by way of loan financing.  

The search action has led to the seizure of unexplained cash of ₹ 4 crore and jewellery valued at ₹ 3 crore while more than a dozen bank lockers have been placed under restraint. The search action has led to the detection of estimated undisclosed receipts and suspicious nature of entries aggregating to more than ₹ 650 crore.

Further investigations are under progress.

Unaccounted cash receipts detected after tax search uncover extensive undisclosed transactions and asset restraints; investigations continue. Income-tax search and seizure on a Surat real estate and financing group uncovered a parallel set of books and coded transactional records decoded by investigators, revealing unrecorded cash receipts from sales, cash infusions, bogus accommodation-entry loans paid in cash, unexplained cash expenses, significant unexplained investments in real estate and loan financing, seizure of unexplained cash and jewellery, restraint of multiple bank lockers, and aggregated detection of substantial undisclosed and suspicious receipts; further investigations are ongoing.