The Income Tax Department conducted a search and seizure operation on 29.07.2019 against a prominent real estate development group, covering more than 40 premises in Mumbai and Pune.
During the operation, the department unearthed evidence related to the receipt of “on money” in the sale of commercial and residential properties, bogus unsecured loans, bogus long-term capital gains, and other sham transactions allegedly used to evade income of around ₹700 crore.
The search revealed irregular transactions involving accounting manipulation, leading to tax evasion of approximately ₹525 crore. Evidence of “on money” transactions worth about ₹100 crore in residential and commercial property sales was also found.
The investigation further indicated the use of accommodation entries in the form of bogus loans and the involvement of entry operators or hawala networks to generate fictitious long-term capital gains for the group’s promoters. Additionally, jewellery worth approximately ₹14 crore was seized and is under verification.
The investigation and search operation were still in progress at the time of reporting.
