“These documents reveal that the group was involved in huge unrecorded cash sales of pharmaceutical drugs. It was also found that a large number of purchases, salary payments and other expenses were made in cash,” the IT department said without naming the company.
The IT team seized unaccounted cash of Rs 4.2 crore and jewellery/bullion worth Rs 4 crore.
Unrecorded cash sales
A key person involved in such transactions agreed to this modus operandi of unrecorded cash sales of pharmaceutical drugs, including cash receipts via hawala for the sale of drugs to Afghanistan, the IT department said on Friday.
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Preliminary analysis of the captured data indicates that these hawala cash receipts amount to approximately Rs 25 crores. In the case of a pharmaceutical company specializing in Active Pharmaceutical Ingredients (APIs), excess stock valued at Rs. 94 crores was found.
In addition, this cash obtained from unrecorded cash sales was invested in the purchase of real estate and the expansion of pharmaceutical drug manufacturing facilities.
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The tax authorities have noted that the group’s real estate entities have engaged in the off-book sale and purchase of properties for cash. In addition, the group also recorded false long-term/short-term capital losses in the securities market to offset the capital gains realized on these real estate transactions.
The amount of these fake losses is estimated to be around Rs 20 crore.
Moreover, the group in question has also started benami entities to buy real estate properties in Himachal Pradesh. Further investigations are in progress.