I-T dept seizes Rs 6 crore unaccounted cash from city-based real estate group

Several documentary and digital evidence have been found and seized demonstrating receipt of cash to the tune of Rs 100 crore

The Income Tax (IT) department initiated search and seizure operations on a real estate group engaged in the construction of residential and commercial projects in Mumbai and the Navi Mumbai Region on November 25. The group (name not disclosed by the agency) is mainly carrying out the development of slum rehabilitation projects. The search action covered around 30 premises. As a result of the search action, unaccounted cash exceeding Rs 6 crore was seized, agency officials informed on Thursday.

According to IT sources, the search action unearthed various methods of tax evasion allegedly adopted by the group. Several documentary and digital evidence was seized, demonstrating receipt of cash to the tune of Rs 100 crore as part of consideration on sale of flats, which is not accounted for in the regular books of account. The fact of receipt of on-money on such transactions is also corroborated in the statements recorded during the search proceedings.

The modus operandi adopted by the group includes issuing of promissory notes equivalent to the on-money component to the customers and these promissory notes are destroyed after registration of the flat, agency officials claimed.

An official said that incriminating evidence regarding unaccounted cash payments made not only to the original tenants of the slums for vacating the dwelling unit but also to some other persons for facilitating vacation of the properties has been found and seized.