40 Teams, 250 Officials Deployed in Intensive 6-Day Search on Bhutani Infra, Group 108, Advent, and Logix
In a major crackdown on alleged tax evasion, the Income Tax (I-T) department orchestrated 'Operation Mahakal,' deploying 40 teams comprising 250 officials to conduct searches at locations associated with four prominent Noida-based construction groups - Bhutani Infra, Group 108, Advent, and Logix.
Following an exhaustive 6-day search, officials unearthed unaccounted cash exceeding Rs 1,500 crore linked to the investigated construction groups. The operation, named 'Mahakal,' specifically targeted companies accused of evading taxes in the sale of commercial spaces.
Hidden Pen Drives Expose Massive Cash Transactions by Bhutani Group
During the investigation, the I-T officials made a significant discovery – two concealed pen drives containing detailed information about Bhutani Group's involvement in substantial cash transactions. The recovered data unveiled that the group received a staggering Rs 429 crore in cash during the financial years 2019-20, 2020-21, and 2021-22.
Further analysis of the pen drives exposed that Bhutani Group accepted an unaccounted-for cash amount of Rs 595 crore during this period. Statements recorded from employees confirmed the acceptance of cash components in group transactions, with the group offering an 'Assured Cash Return' and 'Brokerage in Cash' to investors and brokers.
Tax Evasion Unveiled: Assured Cash Return Scheme Used as Cover
The tax evasion scheme revolved around the 'Assured Cash Return' scheme, as per agreements discovered during the operation. While the Securities and Exchange Board of India (SEBI) considers the scheme legal, officials revealed its exploitation for tax evasion purposes. The enticing advertisement promised investors monthly payments, providing a substantial return until possession, creating legal ramifications for those involved.
As investigations unfold, the Income Tax department aims to bring clarity to the extent of tax evasion and whether other entities were involved. The 'Operation Mahakal' signifies a significant move towards ensuring financial transparency and accountability within the real estate sector.
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