I-T dept seizes cash, jewellery worth over Rs 2.5 Cr after raids against ex-Chhattisgarh minister

A modus operandi of 'tax evasion and other dubious practices' adopted by these people was detected and a preliminary analysis suggests that they received ill-gotten money in lieu of the grant of undue favours to different people in government-related works, officials said.

New Delhi/Raipur: The income-tax department has seized cash and jewellery worth more than Rs 2.5 crore during searches conducted against former Chhattisgarh minister and Congress leader Amarjeet Bhagat and others, the CBDT and officials said on Thursday.

The raids were launched on January 31 at 25 premises in Raipur, Surguja, Sitapur (Surguja district) and Raigarh district, the Central Board of Direct Taxes (CBDT) said in a statement.

It did not name the entities searched but officials confirmed that the action was undertaken against Bhagat and others.

The CBDT frames policies for the tax department.

Bhagat, a senior Congress leader from a tribal community, had said on February 5 that the I-T raids on his premises were an attempt to harass him and that the officials could not find anything.

The searches were conducted against a politically-exposed person (PEP), his close associates and a few government officials, the CBDT said, adding that one of the associates of the PEP is engaged in the business of real estate.

A modus operandi of 'tax evasion and other dubious practices' adopted by these people was detected and a preliminary analysis suggests that they received ill-gotten money in lieu of the grant of undue favours to different people in government-related works, it said.

It was found out that an amount of about Rs 13 crore was received in cash by the said PEP through his close associates, the CBDT said.

"This ill-gotten money has been invested in real estate through the associates of the PEP. Similarly, evidence of payment of on-money (cash) in purchase of real estate to the tune of about Rs 3 crore and evidence of unaccounted cash expenditure of more than Rs 8 crore, made by the associates of the PEP, in the real estate business have also been found," the CBDT said.

The 'veracity' of such evidence has also been buttressed by the statements of close associates of the PEP and their employees, wherein they have admitted the above malpractices, it claimed.

Documents related to 'illegal' grabbing of land by the close associates of the PEP were found and some farmers and affected people, whose land has been transferred in such manner, admitted in their statements that the said land transactions were completed under the 'undue' influence of the PEP, the statement said.

It added that 'undue' influence of the PEP was also utilised by his associates in getting the permission for the purchase of 'Punarwas Patta' and issues related to a mismatch in turnover vis-a-vis bank credits have also been detected from the factory premises owned by the spouse of the PEP, who is running a manufacturing concern of hume pipes.

The search operation resulted in the seizure of unaccounted cash and jewellery worth more than Rs 2.5 crore, the CBDT said.