The Income-Tax Department searches on a major Hyderabad-based pharmaceutical group has lead to the seizure of about ₹143 crore in cash and detection of unaccounted income to the tune of ₹550 crore.
The agency started the search and seizure operations on October 6 and about 50 locations across six States were covered.
“This pharmaceutical group is engaged in the business of manufacturing of intermediates, Active Pharmaceutical Ingredients (APIs) and formulations. Majority of the products are exported to foreign countries i.e. U.S.A, Europe, Dubai and other African countries,” the Department said.
During the searches, the agency identified the hideouts where a second set of books-of-accounts and cash had been stored. Evidence in the form of digital media, pen drives and documents were seized. “Incriminating digital evidence was gathered from SAP @ ERP software maintained by the assessee group,” it said.
The agency detected several issues related to discrepancies in the purchases made from bogus and non-existent entities, and artificial inflation of certain heads of expenditure.
“Further, evidence of on-money payment for purchase of lands was also found. Various other legal issues were also identified...,” the agency said, adding that personal expenses were included in the company’s books. Land was purchased by the related parties below the government registration value.
According to the I-T Department, several bank lockers — 16 of which have been operated — were located during the searches.