As the Income Tax department has detected undisclosed income of about Rs 224 crore after its sleuths recently raided a unicorn start-up group based in Pune and Thane in Maharashtra, the 'Infra. Market' said it is cooperating with the authorities and is providing all necessary information in the investigation of the case.
During searches carried out at 23 premises of the start-up group in Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh, and Madhya Pradesh in March the Income Tax department has detected an undisclosed income of about Rs 224 crores.
The group is engaged in wholesale and retail of construction materials and has a pan-India presence with an annual turnover exceeding Rs 6,000 crore.
Quoting a statement issued by the Central Board of Direct Taxes (CBDT), the policy-making body for the tax department, a news agency reported that unaccounted cash worth Rs 1 crore and jewellery worth Rs 22 lakh have been seized till now.
The statement said it was found that the group has booked bogus purchases, made huge unaccounted cash expenditure, and obtained accommodation entries, aggregating to the tune of over Rs 400 crore.
Hawala network also unearthed, claims CBDT
Quoting the statement of the CBDT, the news agency reported that it was found that the group obtained huge foreign funding via the Mauritius route, by issuing shares at an "exorbitantly" high premium.
A "complex" hawala network of some Mumbai and Thane-based shell companies, was also unearthed, the CBDT said in its statement.
"These shell companies exist on paper and were created only for the purpose of providing accommodation (bogus) entries. Preliminary analysis has revealed that the total quantum of accommodation entries provided by these shell entities exceeds Rs 1,500 crore," the policy-making body of income tax stated in its statement.
We are cooperating with authorities, says the founder of the start-up group
Quoting the statement of Sourvik Sengupta, Moneycontrol reported that they were supporting the authorities.
"We continue to cooperate with the authorities and provide all necessary information to the department to solve all queries they have in relation to their search. We continue to work with the department to solve all their queries related to the company. We will wait for the final investigation report is out to comment further. Since the matter is subjudice we would not like to comment further", Moneycontrol reported while quoting the statement of Sengupta.
