New Delhi: The Finance Ministry on Saturday (October 9, 2021) informed that the Income Tax Department conducted a search and seizure operation on a major Hyderabad-based pharmaceutical conglomerate and seized cash worth over Rs 142 crore. On October 6, a search operation was conducted at around 50 places in six states.
The Pharmaceutical Group is engaged in the business of manufacturing Intermediates, Active Pharmaceutical Ingredients (APIs) and Formulations and most of its products are exported abroad such as America, Europe, Dubai and other African countries.
“During the search, the hideout was identified, where books of accounts and another set of cash were found. Incriminating evidence in the form of digital media, pen drives, documents etc. were found and seized. Digital evidence collected from SAP@ ERP software maintained by the assessee group,” the Finance Ministry said in a statement.
“During these searches, issues relating to discrepancies in purchases made from bogus and non-existent entities and artificial inflation of certain heads of expenditure were detected. In addition, evidence of on-money payments for purchase of land was also found. Issues such as personal expenses and land purchased by related parties at a price less than the official registration value were also identified in the books of various other legal entities.
The Finance Ministry said that many bank lockers were found during the search, out of which 16 lockers have been operated. The searches have resulted in seizure of unexplained cash amounting to Rs 142.87 crore so far and estimated unaccounted income of around Rs 550 crore so far.
The Finance Ministry said that further investigation and undisclosed income has been detected.