IT detects Rs 1000 Cr 'unaccounted transactions' in Gujrat based Chiripal group having Hyd links

Hyderabad: Income Tax officials raided Gujarat-based real-estate firm Chiripal Group of Companies in July. This led to the detection of Rs. 1,000 crores in "unaccounted" transactions.

The raids covered 58 premises spread across Kheda, Ahmedabad, Mumbai, Hyderabad, and Kolkata. So far, unaccounted cash of Rs. 24 crores and unexplained jewellery, bullion, etc. valued at Rs. 20 crores have been seized. Various incriminating evidence in the form of documents and digital data were also seized.

The business conglomerate is engaged in diverse fields, including textiles, chemicals, packaging, real estate, and education.

"The documents revealed that the group has been engaged in large-scale tax evasion by adopting various methods, including by way of unaccounted cash sales outside the books of account, booking of bogus purchases and on-money receipts from real estate transactions. The group has also been found involved in layering of unaccounted sums through share premium from Kolkata-based shell companies. Certain instances of unaccounted income generated through cash-based 'sarafi' (unsecured) advances made have also been found," read a statement by the Central Board of Direct Taxes.

How the group made profits.

The group has been involved in profiteering through the manipulation of share prices of its listed companies through operators.

Evidence seized by I-T sleuths revealed that the group has been siphoning off funds through fictitious entities. Further, an analysis of the evidence suggests that it is also involved in the manipulation of books of account of its public limited companies.