The Income Tax Department has carried out searches on two Chennai-based groups, one of which is a leading bullion trader in Tamil Nadu and the other is one of the biggest jewellery retailers in South India.
The searches, so far, have resulted in the detection of undisclosed income of more than Rs 1,000 crore, said a Finance Ministry statement, adding that unaccounted cash of Rs 1.2 crore has been seized so far.
The search operation was carried out at 27 premises located in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Trissur, Nellore, Jaipur and Indore on Thursday, March 4.
The evidence found in the premises of the bullion trader revealed that unaccounted cash sales, bogus cash credits were found from its branches and cash credits were unearthed in dummy accounts in the guise of advance for purchases.
“Unexplained” cash deposits were also found from the demonetisation period along with bogus outstanding sundry creditors and huge unexplained stock variations, as per the statement.
The evidence found in the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers. They had also given cash loans to builders and made cash investments in real estate sector.
The group made unaccounted gold bullion purchases, claimed wrongful bad debts, inflated wastages in conversion of old gold to fine gold and jewellery making among others.
Further investigations are in progress, it said.