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IT Raids on Government Contractors and Realty Developers in Karnataka Yield Rs 94 Crore in Cash and Jewelry

Income Tax department raids on government contractors and real estate developers in Karnataka and other states have led to the seizure of Rs 94 crore in cash, along with gold and diamond jewelry valued at Rs 8 crore, and approximately 30 luxury wristwatches, according to the Central Board of Direct Taxes (CBDT). These searches, which began on October 12, covered 55 premises in Bengaluru, cities in Telangana and Andhra Pradesh, as well as Delhi. The total value of the seized assets amounts to more than Rs 102 crore.

The CBDT reported the discovery of “incriminating” evidence in the form of loose sheets, hard copies of documents, and digital data during these raids. The investigations have revealed a modus operandi of “tax evasion” involving contractors manipulating their income by inflating expenses through bogus purchases, non-genuine expense claims with sub-contractors, and claiming ineligible expenses.

These irregularities have led to the generation of substantial unaccounted cash and the creation of undisclosed assets, as per the CBDT. Following the recovery of this “unaccounted” cash, a political dispute has emerged, with the BJP suggesting it is linked to the ruling Congress party, while Chief Minister Siddaramaiah has denied these allegations as baseless.  The CBDT is responsible for framing policies for the Income Tax department in India.


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