Unaccounted income of 224 crores was discovered during raids at the Unicorn Start-Up Group in Pune and Thane
The Income Tax department discovered concealed income of over Rs 224 crore during a recent raid on a unicorn start-up group located in Pune and Thane in Maharashtra, according to the CBDT on Sunday.
On March 9, searches were conducted at 23 locations in Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh, and Madhya Pradesh.
The group is involved in the wholesale and retail of building supplies and has a pan-India presence with an annual turnover surpassing 6,000 crores, according to a statement issued by the Central Board of Direct Taxes, the tax department’s policy-making authority.
Unaccounted cash totalling one crore and jewellery worth 22 lakh have been confiscated thus far, according to the report.
As per the statement, the group recorded fake transactions, made large unexplained cash expenditures, and got accommodation entries totalling over 400 crores.
This evidence was presented to the group’s directors, who confirmed under oath to this mode of operation, declared additional revenue of more than 224 crores in various assessment years, and therefore promised to pay their appropriate tax burden, according to the CBDT.
It was discovered that the business got massive foreign money through the Mauritius method by issuing shares at an “exorbitantly” high premium.
The CBDT also revealed a “complex” hawala network including certain Mumbai and Thane-based shell businesses.