IT raids 7 locations of Jamshedpur-based iron scrap dealer, associates

The investigation wing of the Income Tax department from Odisha, Jharkhand and West Bengal on Thursday raided the residential and office premises of scrap iron and coal dealer and an accused in the GST tax fraud Vicky Bhalotia and at least half a dozen of his associates, including one close with the power centre in the state, people familiar with the matter said.

Teams of I-T sleuths from Odisha and Ranchi swooped on the residence and office of Bhalotia near Firangi Chowk under Jugsalai police station limits in Jamshedpur early Thursday morning, said officials.

Mittal is known to be close with the people in the corridors of power in the state.

Simultaneous raids were carried out reportedly after I-T sleuths took Bhalotia, Ranjan Mittal and Nilesh Rajghadiya into custody from a hotel in Kolkata.

“Raids are being carried out at least seven locations in three states in connection with disproportionate earnings and assets vis a vis known sources of income. The search and survey is continuing,” an official, who did not wish to be named, said.

According to the people mentioned above, raids were being conducted at the premises of Bhalotia’s partner Sushil Khowawala, son of a government advocate, a Bharatiya Janata Party leader and others. A search was also carried out at the residence of another businessman, Devendra Gupta.

It may be noted here that sleuths of the GST department had also raided Bhalotia’s offices and residences in connection with alleged fraud involving input tax credit (ITC) through an inter-state as well as inter-district network of businessmen. He was also earlier arrested by Durgapur police in connection with GST fraud.