Hyderabad: The sleuths of Income Tax department unearthed unaccounted income to the tune of Rs 400 crore from Telangana based Msn Pharmachem Private Limited. The company is represented by two directors - Laxmi Prasuna Manne and Satyanarayana Reddy Manne.
On the 24th of February, IT sleuths carried out searches in properties owned by the pharmaceutical group based out of Hyderabad. The group which was incorporated in 2004 is engaged in the business of manufacturing of intermediates, active pharmaceutical Ingredients (APIs) and formulations. Majority of the total manufactured products are exported to various countries including USA and Europe. The search operation was carried out at about 20 locations in 5 States.
"Searches have resulted in seizure of cash amounting to Rs. 1.66 crore. During the extensive action incriminating evidence in the form of digital media, pen drives, documents, have been found and seized. Incriminating digital evidences were gathered from SAP @ ERP software maintained by the group" said a statement by the IT department.
Investigation revealed that the company used bogus and non-existent entities, artificial inflation of certain heads of expenditure, along with suppression of receipts relating to by-product sale were detected. Further, evidence of on-money payment for purchase of lands was also found. Multiple other legal issues were also identified such as personal expenses being booked in the company's books and land purchased by related concerns / individuals below govt. SRO value.
The IT sleuths found unaccounted income to the tune of Rs 400 crores, evidence relating to out of which the group has admitted an additional income of Rs. 350 crore.
The longest serving directors currently on board are Laxmi Prasuna Manne and Satyanarayana Reddy Manne. In total, the company is connected to 28 other companies through its directors.