Quick Summary
The Income Tax Department carried out search and seizure operations on 08.12.2021 on four Asset Reconstruction Companies (ARCs). Total of 60 premises spread over Mumbai, Ahmedabad, Delhi, etc. have been covered. The search action has revealed that the ARCs had adopted various unfair and fraudulent trade practices in acquiring the Non-Performing Assets (NPA) from the lender banks. It has been found that an unholy nexus existed between the borrower groups and ARCs and in the process, a maze of
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FAQ :
The Income Tax Department conducted search and seizure operations on 08.12.2021, covering 60 premises of four Asset Reconstruction Companies (ARCs).
The searches covered 60 premises spread across Mumbai, Ahmedabad, Delhi, and other locations.
The ARCs allegedly adopted unfair and fraudulent trade practices in acquiring Non-Performing Assets (NPAs) from lender banks, using shell companies and hawala channels, and acquiring assets at undervalued prices.
ARCs are found to have concealed profits by diverting them to related concerns under the guise of consultancy receipts or unsecured loans/investments, thereby evading taxes.
Evidence included a parallel set of accounts on Tally software containing over Rs. 850 crore in cash transactions, handwritten diaries detailing transaction layering, and offshore fund routing evidence. Rs. 4 crore in cash was also seized.
Large volumes of documentary and digital evidence are being analysed, and further investigations are in progress.
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