The raids were carried out on September 22 on the basis of intelligence on tax evasion.
According to a statement from the Ministry of Finance, in addition to the diamond activity, the group was also active in the manufacture of tiles. The operation involved 23 premises located in Surat, Navsari, Morbi, Wakaner in Gujarat and Mumbai in Maharashtra.
“The highlight of the search includes the seizure of a large volume of unaccounted for data entered in paper as well as in digital form, which was kept in secret locations under the custody of his trusted employees in Surat, Navasari, Mumbai, “the statement read.
“The data includes proof of unrecorded purchases, unaccounted sales, taking accommodation entries for purchases against which money is received, movement of those cash and actions through Angadia businesses,” the conservation of unrecorded money with angadias, the investment of this unrecorded income for the purchase of goods and stock, etc. over the past five years, “he added.
Primary data analysis reveals that the appraised person made unrecorded purchases and sales of small polished diamonds of approximately Rs 518 crore during the period.
Further, the data reveals that the appraised person sold over Rs 95 crore of diamond scrap in cash generated from their manufacturing activities, which was unrecorded and represents their income.
“The appraiser, during these years, recorded the sale of approximately Rs 2,742 crore of small diamonds in his books, against which, a substantial part of the purchases were made in cash, but the purchase invoices were been taken from accommodation entry providers, “the ministry informed.
In addition, according to the ministry, the appraised company also made its major purchases of rough diamonds through imports and made export sales of larger finished diamonds through its Hong Kong registered company, which is effectively controlled and managed from India only.
“The data reveals that the appraised person has made purchases of Rs 189 crore and sold Rs 1,040 crore in the past two years through this entity,” they said.
“During the search, the complete financial transactions of real estate transactions were found, which led to the detection of unrecorded income of Rs 80 crore. In addition, the transactions of sale of shares relating to the tile trade have been found. been examined, which led to the detection of Rs 81 crore of unrecorded income, ”they added.
The Income Tax Department, during the search operation, also seized unrecorded money and jewelry worth Rs 1.95 crore, and an unrecorded diamond stock of 8,900 carats worth Rs 10.98 crore has been detected so far.
“A large number of lockers belonging to the group have been identified, which have been placed in receivership and will be exploited in due course,” he added.
The search operation is continuing and further investigations are underway.