Income Tax Department conducts searches at Oberoi Realty, Capacite Infra
Confirming the development, a senior official of the I-T Department told Moneycontrol there was suspicion on related party transaction within Oberoi and also of a difference between the sale price of housing units shown on the books and the registered prices.
August 20, 2019 / 03:06 PM IST
The Income Tax Department August 20 conducted searches at offices of Oberoi Realty and its vendor Capacite Infraprojects to probe suspicious fund trails in the companies.
Confirming the development, a senior official of I-T Department told Moneycontrol there was suspicion on related party transaction within Oberoi. The department also suspected a difference between the sale price of housing units shown on the books and the registered prices.
Moneycontrol has asked Oberoi Realty and Capacite for comments, and the story will be updated as soon as they respond.
Another source told Moneycontrol, “Capacite Infra is one of the largest vendors of Oberoi Realty and recently secured Rs 400 crore-worth orders.”
The tax department has also scrutinized flat buyers details of the company. Since Oberoi Realty deals in the luxury home segment, the department suspects benami transactions by flat buyers to hide their identities.
Oberoi Realty was under the scanner of Ministry of Corporate Affairs for alleged misuse of the proceeds from its Initial Public Offering (IPO), as against the promised objectives in Draft Red Hearing Prospectus (DRHP).
In the last two months, this is the second time a large builder is under the scanner of the investigation department of Income Tax. Last month, the tax department conducted searches in offices of Hubtown
and its joint venture firms.