Benami deals spur I-T raids
Over `50 crore worth unaccounted properties and cash unearthed
The latest surge in the realty market, subsequent increase in property registrations at higher than government rates, and detection of benami deals are the main factors behind the ongoing raids by the income-tax (I-T) department, officials said.
GST officials are also gearing up for raids.
Several issues pending for over a decade are coming to light due to digitisation, and this could be one more reason for the IT raids, said industry representatives who ruled out that the raids constituted tax terrorism.
The I-T department’s raids continued for the fourth day on Saturday. The raids have unearthed over `50 crore worth unaccounted properties and cash, an official said. Raids continued at Aditya Homes, the Red Rose group and other firms at over 20 places in the city.
“The sale of a `8-crore villa at Gandipet has come to light and it is an unaccounted transaction, We have seized `40 crore`50 crore worth black money. We have also taken Illegal gutka stocks into our control,” an IT official told this newspaper.
He said the department had come to know that the Red Rose group was involved in philanthropic activities and had been donating over `3 crore annually.
It’s learnt that the raids were carried out at a premises on Banjara Hills Road No. 3, RR Pan Masala near Apollo Hospital at Jubilee Hills, and other parts of the city. The Red Rose group owned by Mr Syed Hameeduddin is engaged in realty, hotels and plastic manufacturing. A realty firm located at Filmnagar was raided and I-T officials seized accounts books.
The state stamps and registration department recorded registration of 6,33,850 documents in 2016-17 with a market value `40,809 crore. The consideration value was `49,627 crore, 20.73 per cent over the market value.
Mr Somesh Kumar, principal secretary, commercial taxes department, said the state government had recorded a surge in consideration value of documents in comparison with government value. During March-July 2018, 5,56,413 documents with market value of `37,681 crore and the consideration value was more by 30.55 per cent at `49,191 crore.
The surge in benami deals is also a cause for concern for the state government as every fifth deal is a benami or proxy transaction in land registrations.
The I-T department has opened 24 units to implement the anti-benami Act across the country. “We have our own sources to learn what’s happening. The department is busy matching the data of shell companies as well. Before beginning a raid, we also recce the targeted premises,” the I-T official said.
“It takes some time to zero in on benami deals. May be the reason for surge in registrations over government value is the cash crunch. Shortage of currency is forcing buyers to get banks involved to complete the registration of construction agreements and sale deeds,” an I-T official said.
Chief Minister K. Chandrasekhar Rao himself accepted this fact and has directed officials to take action against such malpractice. However, on what basis, the state government has arrived to this fact that benami properties accounted for 20 per cent of land deals not revealed. Generally, tax evaders park their undisclosed money in buying property in the name of some other person.