Mining groups in Kerala under IT scanner; unearth large volume of unaccounted cash

So far, the searches have led to the detection of estimated unaccounted transactions amounting to Rs.200 crore

January 11, 2022

IT Dept unearths large volume of unaccounted cash in Kerala

In a major crackdown on the mining groups in Kerala, the Income Tax (IT) Department has carried out search and seizure operations on two groups engaged in quarry operations at more than 35 premises.

The 35 premises are spread across Kottayam, Eranakulam, Thrissur, Palakkad, and Kannur districts in Kerala.

The raids resulted in the seizure of unaccounted cash of over Rs.2.30 crore. So far, the searches have led to the detection of estimated unaccounted transactions amounting to Rs.200 crore.

The IT department has also found various incriminating documents and digital evidence. The department has seized the documents and digital evidence including a parallel set of books of account recording the entries of actual sales and receipt of cash.

the IT Department statement said that the evidence has revealed the modus operandi being followed by the quarry operators who indulged in large-scale suppression of sales made in cash, including the fact that these transactions were not recorded in the regular books of account of the groups.

The correlation of this evidence also indicates that the unaccounted cash generated was systematically invested in the acquisition of immovable properties, used for the business of cash loans, and unrecorded capital investments in other businesses.

The search team has also gathered evidence of on-money payment for the purchase of properties and substantial cash deposits in undisclosed bank accounts. The assesses of the group have been found to have sold immovable properties without duly accounting for the capital gains arising from such transactions.

[With Inputs from IANS]

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