I-T dept raids in J'khand unearth ₹2 cr in cash, ₹100 cr unaccounted transaction

Days after the Income Tax (I-T) department raided multiple locations in Jharkhand linked to two Congress legislators and some traders, the Central Board of Direct Taxes (CBDT) alleged that “these groups have resorted to various modus-operandi of tax evasion.” During the search operation conducted last Friday, the I-T department seized undisclosed cash exceeding ₹2 crore and discovered unaccounted transactions and investments exceeding ₹100 crore.

I-T department had raided premises linked to business groups engaged in coal trading, transportation, execution of civil contracts, extraction of iron ore and production of sponge iron as well as “two politically exposed persons and their associates.”

“The search operation has led to the seizure of large number of incriminating documents and digital evidences,” the statement read.

“A preliminary analysis of these evidences indicates that these groups have resorted to various modus-operandi of tax evasion including inflation of expenses, transactions of loans in cash, payments/receipts in cash and suppression of production,” it added.

“During the search, it has also been found that investments have been made in immovable properties, the source of which could not be fully explained.”

According to officials familiar with the matter, the “politically exposed persons” were Congress MLAs Jaimangal Singh and Pradeep Yadav. Singh called the raids politically motivated, adding that he declared details of all his assets in his election affidavit. He also alleged that one of the vehicles in which the I-T officials arrived in Bermo initially carried a BJP sticker on its front glass. “The sticker was later removed by a person who was wearing a BJP stole. The car was taken away. This is a matter of investigation,” he said.

In August, Singh complained against three party legislators, who were arrested by the West Bengal Police following the recovery of ₹49 lakh in cash from their vehicle in Howrah district, alleging the trio was part of a conspiracy to topple the Jharkhand government. Singh also filed a zero FIR with Argora police, saying the three legislators called him to Kolkata and told him that Assam chief minister Himanta Biswa Sarma assured him of ₹10 crore and a ministerial berth if the BJP formed the government in Jharkhand.

Both Sarma and the BJP denied the allegations.