I-T Dept seizes assets worth over 24 cr of a leading hospitality group

The Income Tax (I-T) Department has seized unaccounted assets valued at Rs 24.93 crore in search operations conducted in 13 premises of a leading hospitality industry group in the National Capital Region (NCR) on January 19.

In a press release on Friday, the Central Board of Direct Taxes (CBDT) said: "The Income Tax Department conducted searches on January 19, on a group which has been on their radar for having substantial undisclosed foreign assets. The operation covered 13 premises in NCR."

"The group is a leading member of the hospitality industry, running a hotel abroad and a chain of luxury hotels under a prominent brand name, situated at various locations in India," added the CBDT.

"The search operation has so far resulted in the seizure of unaccounted assets valued at Rs 24.93 crore (cash of Rs 71.5 lakh, jewellery worth Rs 23 crore and expensive watches valued at Rs 1.2 crore)," said the release.

In the release, CBDT claimed the evidence seized during the search reveals that a large amount of black money was stashed abroad by the group, through the mechanism of Trusts, formed in the early 1990s in tax havens.

"The investigation has successfully lifted the veil, leading to detection of undisclosed foreign assets of more than Rs 1,000 crore, apart from domestic tax evasion of more than Rs 35 crore which may, inter alia, lead to consequences under the Black Money Act, 2015, as also, action under the Income-Tax Act, 1961 respectively," said the release.

The foreign assets include investment in a hotel in the United Kingdom, immovable properties in the UK and the UAE and deposits with foreign banks. Such foreign holdings of the main persons have remained hidden for decades beneath complex multi-layered structures, located in different countries, ensuring secrecy, according to CBDT.

Further investigations are underway.