ITD operations intensify, more raids being planned in coming weeks

The Income Tax Department (ITD) is conducting investigation in around 100 locations across four major cities, namely Delhi, Mumbai, Chennai and Hyderabad.

The Chennai Directorate is searching at 33 locations in Chennai and Trichy, as part of investigation against Tamil Nadu Health Minister C Vijaybhaskar and his associates, who are in the business of manufacturing and trading of blue metals and sand mining.

The Minister faces allegations of a huge amount of payoff received from illegal sand mining operations, medicine supply to hospitals and distribution of cash to voters in the by-elections in Chennai.

In Mumbai, the Directorate is conducting a search operation on a jewellery group and has so far recovered cash worth Rs. six crores. Seven premises have been raided, according to ITD sources.

Hyderabad Directorate is carrying out investigation in more than 25 premises of a group engaged in chit fund business. This chit fund group has deposited more than Rs. 80 crores of cash during the period of demonetisation.

Meanwhile, searches are also underway in Delhi at 26 premises, involving a leading business group engaged in commodity imports. 14 premises of this group have been raided in Delhi, Lucknow and other places in Uttar Pradesh.

Core allegations include Benami trading on NCDEX/MCX, bogus purchases and under-invoicing of sales. ITD is also conducting verification of builders who are allegedly a business associate of a politician.

The Government crack down on tax evaders is set to intensify in the coming weeks, with more such actions planned across the country.