On October 28, 2020, the Income Tax (I-T) Department had started an investigation in the case of a Bijnor based group engaged in Real Estate business, and it’s associates. Allegations about the group companies were rising that they were having enormous security premium reserves and massive liabilities in the form of loans and advances from related parties/others and other payables, even then they had provided substantial loans to others. And the sales figures of this group were not comparable with the loans and advances showed.

Cash amounting to Rs.50 lakhs and the unexplained jewellery weighing about 2.5 Kg was discovered in these search operations. The Share Premium related accusations are revealed to be correct during the examination. These premium amounts are not commensurate with the income of the concerned shareholders, who could not explain their sources.

It was also revealed that more than 20 companies had been running from a single premise out of which many companies are dummy companies and do not show any operations. “Companies are not having any worth but are showing significant amounts of share premium. The dummy companies are being used as a conduit for layering of funds,” said the Union Finance Ministry in a statement.

In the accused group, there is one member who has stakes financial interest in a UK based company along with one property in London as it is found that investments are made in the company as the sources are investigating. Apart from this, incriminating documents relating to investments in many properties have also been recovered from several premises and the same are getting investigated. The sources of investment in properties owned by the group are being verified. In the investigation, handwritten papers contexting to specific payments have also revealed.

Moreover, 6 bank lockers had been caught, and further investigations are going on.

With Warm Regards,

CL Bureau.

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