Black Income Worth Rs 400 Cr Unearthed After Raids On 2 Delhi-NCR Realty Groups

After raids on two real estate organizations in Delhi and the National Capital Region, the Revenue Tax Department discovered hidden income of Rs 400 crore (NCR). On November 17, searches for the mysterious groups were carried out.

The two organizations work together to build commercial and residential developments. According to the Central Board of Direct Taxes (CBDT), early investigation of the seized data revealed that the groups were getting part of the sale consideration in cash against the sale of flats, which was not documented in the books of accounts.

Certain "evidence" of cash transfers made to various parties for the purpose of obtaining land deals and other contracts, as well as paying various unexplained real estate charges, it added.

According to the Central Board of Direct Taxes (CBDT), a preliminary investigation of the seized data revealed that the groups were getting a portion of the sale consideration in cash against the sale of flats, which was not documented in the books of accounts. It alleged that there is "widespread tax evasion" and that the appropriate tax on such income has not been offered.

According to evidence acquired during the search, the groups funneled unexplained income into their businesses through nondescript and non-functional shell organizations controlled by professional entry providers or group employees/associates acting as directors.

"One of the groups was also discovered to be employing a network of charitable organizations involved in educational activities, ostensibly for the purpose of tax evasion and supporting its real estate company," the report added.