Top-Stories

“Unaccounted” income of Rs 550 cr found during tax raid on Hetero Pharma Group: Report

Officials said that Rs 142 crore in cash was seized during the raids. (representative image)

New Delhi:

Official sources claimed on Saturday that the Income Tax Department recently raided Hyderabad-based Hetero Pharmaceutical Group after unearthed “unaccounted” income of Rs 550 crore and seized over Rs 142 crore in cash.

Company officials were not immediately available for comments.

On October 6, the Income Tax Department had raided around 50 places in half a dozen states.

The Central Board of Direct Taxes (CBDT) said, “During the searches, several bank lockers have been found, out of which 16 lockers have been operated. Unexplained cash worth Rs 142.87 crore has been seized in the searches so far.” said in a statement.

“The unaccounted income revealed so far is estimated to be around Rs 550 crore,” it said.

Official sources have identified it as Hetero Pharma Group of Hyderabad.

It added that further investigation and undisclosed income is being ascertained.

CBDT formulates policy for Income Tax Department.

The CBDT said the group is engaged in the business of manufacturing intermediates, active pharmaceutical ingredients (APIs) and formulations and most of the products are exported to countries like the US and Dubai and some African and European countries.

“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 payment of money for purchase of land was also found,” it claimed. did.

Several other legal issues were also identified such as personal expenses being booked in the company’s books and land purchased “below the government registration value” by the parties concerned.

It alleged that during the raid the whereabouts were identified where books of accounts and another set of cash were found.

It said, “Incriminating evidence in the form of digital media, pen drives, documents etc. has been found and seized and digital “evidence” has been collected from the SAP and ERP software maintained by the assessee group.

Hetero came into limelight after the group signed several agreements and developed various drugs like Remdesivir and Favipiravir to treat COVID-19.

It has over 25 manufacturing facilities located in India, China, Russia, Egypt, Mexico and Iran.

The company said last month that it had received emergency use authorization from the Drug Controller General of India (DCGI) for a biosimilar version of Tocilizumab to treat COVID-19 in hospitalized adults.

The Rs 7,500-crore pharma major is one of the firms that has tied up with Russian Direct Investment Fund to manufacture COVID-19 vaccine Sputnik V in India.

Back to top button