On September 23, 2021, the department of Income tax carried out search and seizure operations on a group of 4 leading Steel Rolling Mills based out of Jalna, Maharashtra. The companies manufacture steel TMT bars and billets using steel scrap as raw material. The search operation was conducted in over 32 premises spanning Jalna, Aurangabad, Pune, Mumbai and Kolkata.
"During the course of the search and seizure operation, many incriminating documents, loose sheets and other digital evidences were found and seized. These evidences clearly indicate the involvement of the companies in large scale unaccounted financial transactions made outside the regular books of accounts, including inflation of purchases using entry providers, unaccounted cash expenses and investments, etc.", said the ministry of finance release.
"The evidences found also indicate the laundering of substantial amount of unaccounted income earned by the companies in the guise of share premium and unsecured loans using shell companies. Evidence for unaccounted purchase in excess of Rs.200 crore has been found. Huge quantity of unaccounted stock was also found in the factory premises of the companies", added the release.
In the search conducted, 12 bank lockers were unearthed with total unaccounted cash amounting to over Rs. 2.10 crore and jewellery worth Rs. 1.07 crores seized from different premises. Based on the evidence it is suggested that unaccounted income shall go beyond Rs. 300 crore and the 4 companies' post the search operation declared additional income to tune of Rs. 71 crore. Note further investigations are still underway.