The Income Tax Department carried out search and seizure operation on 05.01.2022 on three real estate developers, engaged in the business of land development as well as construction activities in the town of Kurnool and other mofussil areas of Andhra Pradesh and Telangana. More than two dozen premises have been covered in the search operation spread over Kurnool, Ananthapur, Kadapa, Nandyal, Bellary, etc.

During the course of the search operations, several incriminating documents, such as handwritten books, agreements, etc. have been found and seized. Digital data has also been seized from a specialized software application as well as from other electronic gadgets. It has been found in the case of one of the assessee groups that it has been using a software which has been systematically modified to eliminate the unaccounted cash element of the consideration received and to record in the regular books of account the sale consideration that matches with registered sale price.

These groups have been found to be accepting cash over and above the registered value of the properties. Such unaccounted cash is used for payments of on-money towards the purchase of lands and incurring other expenditure.

So far, the search action has led to the seizure of unaccounted cash of ₹ 1.64 crore.

The search has resulted in the detection of unaccounted cash transactions to the tune of ₹ 800 crore.

Further investigations are in progress.

Search and seizure uncovers concealed cash transactions by real estate developers, including software manipulation to hide unaccounted payments; probe continues. Search and seizure operations on three real estate developer groups led to the seizure of handwritten books, agreements and digital data from a specialized software application. Investigators found that a software system had been systematically modified to omit unaccounted cash elements and to record sale consideration matching registered prices, while developers accepted cash over registered values for payments and expenditures. Digital and documentary evidence underpin ongoing inquiries into extensive undisclosed cash transactions.