Cash seizure of over Rs. 142 crore in searches of Income Tax Department in Hyderabad

Last updated: 10 October 2021

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The Income Tax Department has conducted extensive search and seizure operations across 50 locations in six states, targeting a major Hyderabad-based pharmaceutical group. The group, involved in manufacturing APIs and formulations primarily for export, was found to be involved in discrepancies related to bogus purchases, inflated expenses, and on-money payments for land. The operation has so far resulted in the seizure of over Rs 142 crore in unexplained cash and an estimated Rs 550 crore in unaccounted income, with investigations ongoing.

The Income Tax Department carried out search seizure operations on06.10.2021on a major Pharmaceutical group based out of Hyderabad. This Pharmaceutical group is engaged in the business of manufacturing of intermediates, Active Pharmaceutical Ingredients (APIs) and formulations. Majority of the products are exported to foreign countries i.e. USA, Europe, Dubai and other African countries. The search operation was carried out at about50 locations in 6 States. During the searches, hideouts were

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FAQ :

The searches resulted in the seizure of unexplained cash amounting to Rs 142.87 crore and unearthed an estimated Rs 550 crore in unaccounted income.

The targeted company is a major pharmaceutical group engaged in the manufacturing of intermediates, Active Pharmaceutical Ingredients (APIs), and formulations.

The search operations were carried out at approximately 50 locations across 6 states.

Discrepancies were found in purchases from bogus entities, artificial inflation of expenses, on-money payments for land, personal expenses booked as company expenses, and land purchased by related parties below registration value.

Incriminating evidence including digital media, pen drives, documents, second sets of books of accounts, and cash were seized. Digital evidence was also gathered from the company's SAP @ ERP software.

No, further investigations and quantification of the undisclosed income detected are currently in progress.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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