I-T Dept. searches pharma firm, associated concerns in Chandigarh, Delhi, Mumbai

The Income-Tax Department has carried out searches towards a pharmaceutical firm and its associated concerns in Chandigarh, Delhi and Mumbai, on the allegation that the corporate acquired 117 acres of “benami” land in Madhya Pradesh’s Indore in the title of a entrance entity.

The searches, which began on December 13, had been carried out at 11 locations. The company gathered proof establishing that the “benami” entity was a conduit of the pharmaceutical firm. It additionally seized ₹4.29 crore in money and jewelry price ₹2.21 crore. Three financial institution lockers had been additionally put below restraint.

“All the dummy directors and shareholders of the ‘benami’ company have also admitted in their respective statements that it was a shell company with no real business activity and the land in Indore had been bought from the funds of the listed company for the benefit of the managing director,” the I-T Department mentioned.

It is alleged that the corporate was in the method of promoting off the “benami” land. Enquiries had been carried out and an settlement to promote the land in query, containing a money receipt of ₹6 crore was additionally discovered from the possession of the potential patrons.

“The buyers have admitted in their statements that the deal was negotiated by the managing director and the agreement for the sale of the ‘benami land’ was signed in the office of the managing director. The buyers have also admitted that they had given unaccounted cash amounting to ₹6 crore on various dates through one hawala operator,” the company mentioned.

The alleged hawala operator, in his assertion, additionally gave an in depth modus operandi of money switch together with the precise dates and quantities of handing over of the money by him on the workplace of the listed firm.

Investigations additionally revealed that the managing director had claimed wrongful curiosity expense of ₹2.33 crore below Section 23 of the Income-Tax Act, by exhibiting his self-occupied property as rented to his sons.

The Department is probing the “benami” shares price ₹140 crore held by the managing director’s household and the alleged bogus purchases of considerable quantities.