Mumbai: I-T department finds Rs 1,500 crore unaccounted transactions in raid on gutka firm
The Income Tax (I-T) department found unaccounted transactions worth around Rs 1500 crores riads conducted on offices and residences of a gutkha baron As per sources, the search and survey were conducted at properties belonging to the JMJ (JM Joshi) group across the country.
The promoter of JMJ group, JM Joshi’s son Sachin Joshi who is an actor and controls the business operations of the group was arrested by ED on Sunday. He was produced in the Special PMLA court which remanded him to ED custody till February 18.
Why was Sachin Joshi arrested?
Sachin Joshi has been arrested by ED in connection with the Omkar Realtors case as Rs 87 crores of Rs 410 crores diverted by Chairman and MD of Omkar Group were diverted to him and his company accounts. Joshi had bought the Kingfisher villa belonging to Vijay Mallya in Goa for Rs 73 crores in an auction in 2017. He also owns the franchisee of Playboy and runs clubs and restaurants under the franchise.
What is JMJ Group?
The JMJ group is mainly engaged in the business of manufacturing of gutkha, Pan masala, and allied substances, besides having operations in the hospitality sector. The searches were carried out across many locations in India starting early last week and concluded on Saturday.
Recoveries made by I-T department
As per the press statement issued by the IT department, “The search and seizure action has led to the detection of foreign assets lying with a company registered in tax-haven British Virgin Islands (BVI) with an office in Dubai and controlled and managed by the Chairman of the group. The net worth of the BVI company is Rs. 830 crore created by siphoning of funds from India. This fund has been round-tripped to India in the form of a share premium amounting to Rs. 638 crore in the flagship companies of the group.”
“During the search action, various digital evidence and forensic analysis have yielded email communication, establishing control and management of the company with the promoter of the group searched. One of the employees, who was also a shareholder in the BVI company, was identified and cross-examined with the promoter. It has been accepted by the parties involved that the employee was not aware of being a shareholder in the company and he had signed papers on the instructions of the main promoter” the statement added.
The survey revealed the JMJ group has availed bogus deduction under section 80IC of the Income-tax Act, 1961 to an extent of Rs. 398 crore. The group set up two entities in Himachal Pradesh and was found to indulge in sham transactions in order to claim the aforesaid false deduction.
IT officials also found that unaccounted production of pan masala of an amount of Rs. 247 crore at premises of two factories was being carried out by the group.
It was found during the search that the assessee group has falsely claimed deduction under section10AA of the Income-tax Act, 1961 of an amount of Rs. 63 crore in the Gandhi Dham based unit of the group.
During the search action, IT officials seized cash of Rs 13 lakh and jewellery amounting to Rs. 7 crore which was found to have been put under prohibitory orders. Prohibitory orders have also been placed on 16 lockers and on 11 premises belonging to the group by the department.