Income Tax Department conducts searches in Bengaluru

Last updated: 12 February 2021

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The Income Tax Department has conducted a significant search and seizure operation across 26 locations nationwide targeting a major Bengaluru-based liquor manufacturer. The investigation has uncovered undeclared income exceeding £692 million related to joint development projects with a Bengaluru builder, alongside fraudulent expense claims totalling £86 million. Further findings include unaccounted sales of £74 million from a Kerala plant and bogus expenses of £17 million. The group's directors are also under scrutiny for unexplained expenditures of £9 million, and 35 suspected benami properties valued at over £150 million have been identified, along with evidence of foreign assets.

The Income Tax Department carried out search and seizure operation on a major liquor manufacturer group based in Bengaluru on 09.02.2021 at 26 different locations across India. This group has huge land bank which is being developed into residential and commercial properties with a builder based in Bengaluru. The searches have resulted in detecting incriminating evidences relating to concealment of income of more than Rs. 692.82 crore on account of Joint Development Projects with a major builder based in Bengaluru. Also, the group companies have fraudulently claimed expenses amounting to Rs. 86 crore. In respect of their liquor business, unaccounted sales amounting to Rs. 74 crore have been detected from one of their liquor manufacturing plants based in Kerala. The group companies have also claimed bogus expenses of Rs. 17 crore in their business entities.The Directors of the group have incurred unexplained expenditure of Rs. 9 crore attracting the provisions of Section 69C of Income-tax Act,1961.

There are large number of investments made in benami properties in the names of their employees and associates for several years. In total 35 suspected benami properties in the names of their relatives and associates valued at more than Rs. 150 crore have been identified. There are also evidences of foreign assets in the name of a director of the group company.

Income Tax Searches Uncover £878m Undeclared Income in Bengaluru

In all, the search and seizure action has resulted in the detection of total undisclosed income of Rs. 878.82 crore.

Further investigations are in progress.

FAQ :

The main target was a major liquor manufacturer group based in Bengaluru.

The total detected undisclosed income amounts to Rs. 878.82 crore (approximately £878 million).

Undeclared income was detected from joint development projects with a builder, fraudulent claims of expenses, unaccounted sales from a liquor manufacturing plant, and bogus expenses in business entities.

Yes, 35 suspected benami properties in the names of relatives and associates, valued at over Rs. 150 crore (approximately £150 million), were identified.

Yes, there was evidence of foreign assets found in the name of a director of the group company.

The search and seizure operation took place on 09.02.2021 at 26 different locations across India.

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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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