These raids were carried out on November 4, 2022 on certain business groups engaged in coal trade/transport, execution of civil contracts, extraction of iron ore and production of sponge iron. Those searched included two politically exposed persons and their associates.
Undisclosed cash worth more than Rs 2 crore was recovered during the search. A total of 16 bank lockers have been banned. An official statement said the searches so far have unearthed unaccounted transactions/investments of over Rs 100 crore.
Searches were also conducted in Ranchi, Godda, Bermo, Dumka, Jamshedpur, Chaibasa, Patna, Gurugram and Kolkata.
A large number of incriminating documents and digital evidence have been seized in the search operation. Preliminary analysis of this evidence indicates that these groups have resorted to various methods of tax evasion including inflation of expenses, transaction of credit in cash, payments/receipts in cash and suppression of production.
It has also been found during the search that investments have been made in immovable properties, the source of which has not been fully disclosed, the statement said.
The search operation also revealed that one of the groups engaged in civil contract was not maintaining regular accounts. The group is inflating its expenses by entering into non-actual transactions of purchase of raw material/sub-contract expenses outright at the end of the year.
The seized evidence also shows that undue payment in cash has been made to secure the contracts, the statement said.
In the case of the second group engaged in coal trading/iron ore extraction etc., unaccounted stock of iron ore of heavy value has been found, the quantum of which is yet to be determined, the statement said. The said group has also introduced its unaccounted wealth in the form of unsecured debt and share capital by opening layers of transactions through shell companies. Professionals associated with this group have admitted that they did not verify any supporting documents and signed the audit reports prepared by the group’s accountants without due diligence.