The Income-Tax Department has conducted searches against a pharmaceutical company and its associated concerns in Chandigarh, Delhi and Mumbai, on the allegation that the company acquired 117 acres of “benami” land in Madhya Pradesh’s Indore in the name of a front entity.
The searches, which started on December 13, were carried out at 11 places. The agency gathered evidence establishing that the “benami” entity was a conduit of the pharmaceutical company. It also seized ₹4.29 crore in cash and jewellery worth ₹2.21 crore. Three bank lockers were also put under restraint.
“All the dummy directors and shareholders of the ‘benami’ company have also admitted in their respective statements that it was a shell company with no real business activity and the land in Indore had been bought from the funds of the listed company for the benefit of the managing director,” the I-T Department said.
It is alleged that the company was in the process of selling off the “benami” land. Enquiries were conducted and an agreement to sell the land in question, containing a cash receipt of ₹6 crore was also found from the possession of the prospective buyers.
“The buyers have admitted in their statements that the deal was negotiated by the managing director and the agreement for the sale of the ‘benami land’ was signed in the office of the managing director. The buyers have also admitted that they had given unaccounted cash amounting to ₹6 crore on various dates through one hawala operator,” the agency said.
The alleged hawala operator, in his statement, also gave a detailed modus operandi of cash transfer along with the exact dates and amounts of handing over of the cash by him at the office of the listed company.
Investigations also revealed that the managing director had claimed wrongful interest expense of ₹2.33 crore under Section 23 of the Income-Tax Act, by showing his self-occupied property as rented to his sons.
The Department is probing the “benami” shares worth ₹140 crore held by the managing director’s family and the alleged bogus purchases of substantial amounts.
