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I-T raids pharma company, seizes over Rs 142 crore cash

The I-T department found issues related to discrepancies in purchases made from bogus and non-existent entities, and detected artificial inflation of certain heads of expenditure.

October 09, 2021 / 02:30 PM IST
The I-T officials found hideouts where a second set of books of accounts and cash were found. Many bank lockers were found, of which 16 lockers were operated. 
(Representative image)

The I-T officials found hideouts where a second set of books of accounts and cash were found. Many bank lockers were found, of which 16 lockers were operated. (Representative image)

The Income Tax Department carried out search and seizure operations on October 6 at a pharmaceutical company based in Hyderabad, seizing Rs 142.87 crore worth of unaccounted cash.

The unaccounted income is estimated at Rs 550 crore so far, the Ministry of Finance said in a statement on October 9.

"This Pharmaceutical group is engaged in the business of manufacturing of intermediates, Active Pharmaceutical Ingredients (APIs) and formulations. Majority of the products are exported to foreign countries i.e. USA, Europe, Dubai and other African countries," the statement said.

Searches were conducted at over 50 locations in six states, according to the statement.

The I-T officials found hideouts where a second set of books of accounts and cash were found. Many bank lockers were found, of which 16 lockers were operated.

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"Incriminating evidence in the form of digital media, pen drives, documents, etc. have been found and seized. Incriminating digital evidences were gathered from SAP @ ERP software maintained by the assessee group," said the ministry.

The I-T department found issues related to discrepancies in purchases made from bogus and non-existent entities, and detected artificial inflation of certain heads of expenditure.

Officials found evidence of on-money payment for purchase of lands. There were also legal issues such as personal expenses being recorded in the company's books and land purchased by related parties below government registration value.

"Further investigations and quantification of undisclosed income detected is in progress," the ministry said.
Moneycontrol News
first published: Oct 9, 2021 01:43 pm

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