The Income Tax Department seized ₹32.6 crore in cash and 10 kg of gold from the premises of a manufacturing company in a tier three city in Tamil Nadu during searches since Friday.
A statement issued by the Central Board of Direct Taxes on Sunday said the unaccounted income of the company and its promoters, which “specialised in manufacturing certain specialised materials for the health sector in India and abroad” was estimated to be around ₹435 crore. The searches were conducted on 20 locations, including factories, offices and residences.
The company was reportedly involved in systematic inflation of its expenditure using bogus and fabricated invoices. According to the statement, the company would pay for these expenses through cheques or real-time gross settlements (RTGS) and receive them back in cash.
The statement added that the unaccounted income generated was invested by promoters in immovable properties, bank deposits, other valuables and further investment in the business through share capital. Investigation is under way.