On July 5, the Income Tax Department conducted a search and seizure operation against a group operating in the agro and textile as well as against a different group of entry operators. During the search operation in Mumbai and the Delhi-NCR region, 27 premises were examined.
A significant amount of incriminating evidence was found and seized during the search operation in the form of hard copy documents and digital data. ‘It was found during the investigation that most of the turnover of the listed companies of the main group was generated through circular trading. The promoter of the group was involved in systematic manipulation of the performance of certain group companies on stock markets, with the help of stock brokers. Several instances of out of books payment to some stock brokers for unlawful purposes have also been found,’ the I-T department stated.
‘All such irregularities have been admitted by both the promoter and the stock brokers. The group is also supported by a professional person, who is primarily engaged in providing accommodation entries to several other groups, in exchange of cash,’ said the department.
The group has made massive amount of money by claiming bogus purchases of various items, including packaging material worth more than Rs 100 crore, according to the evidence provided. The business has allegedly engaged in over Rs 150 crore worth of reported sales of agro and textile products.