IT Dept conducts searches at unicorn startup group based in Pune, Thane

New Delhi [India], March 20 : The Income Tax Department conducted a Search and Seizure operation on March 9 in the 23 premises of a Pune and Thane based unicorn start-up group, in the states of Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh and Madhya Pradesh.
The unicorn start-up group, with a Pan-India presence and an annual turnover exceeding Rs 6,000 crore, remained primarily engaged in the wholesale and retail business of construction materials across the country.
"A large number of incriminating evidences in the form of hard copy documents and digital data have been found & seized during the search operations. These evidences revealed that the group has booked bogus purchases, made huge unaccounted cash expenditures and obtained accommodation entries, aggregating to the tune of over Rs 400 crore," read a press statement by the Ministry of Finance.
As per the press statement, when this evidence were taken to the Directors of the group, they admitted the act and disclosed an additional income of more than Rs 224 crore in various assessment years. Consequently, they offered to pay their due tax liability.
The search operation also revealed that by issuing the shares at an unreasonably high premium, the group had obtained huge foreign funding via the Mauritius route.
"During the search operation, a complex hawala network of some Mumbai and Thane based shell companies was also unearthed," read the statement.
According to the statement, these shell companies exist on paper and were created only for the purpose of providing accommodation entries. "Preliminary analysis has revealed that the total quantum of accommodation entries provided by these shell entities exceeds Rs. 1,500 crore," it read.
So far, unaccounted cash of Rs. 1 crore and the jewellery worth Rs 22 lakh have been seized.
Further investigations are underway.