IT Raids on Rice Millers, Brokers Uncover Rs 100 Crore Tax Evasion, Rs 3.5 Crore Jewellery Seized

The Income Tax Department in Raipur, Chhattisgarh, has seized jewellery worth ₹3.50 crore from rice millers and brokers for failing to account for it. The seized jewellery includes platinum and gold-silver jewellery studded with diamonds. During the search, tax irregularities amounting to approximately ₹1000 crore were discovered. Documents related to these transactions, properties, benami assets, and investments, along with computers, laptops, and electronic devices, have been seized, and backups have been taken.

Documents and Electronic Devices Seized

The IT team returned on Sunday morning, the fifth day after the search began. During the search, bogus billing, raw material transactions, and income and expenditure details were discovered. Rice millers and brokers were questioned and statements were recorded. Summons have been issued to all, demanding an accounting. Upon appearance and presentation of documentary evidence, an investigation will be conducted to assess tax evasion.

It is noteworthy that the Income Tax Department team conducted raids on 25 locations of rice millers and brokers on January 29. These locations included their homes, offices, warehouses, and the siding area of a port in Kakinada. During the search, ₹10 crore in unaccounted cash and ₹2.50 crore worth of jewellery were seized due to lack of accounting. All 18 lockers were searched, and documents related to tax evasion and raw material dealings were examined.

Six Years of Records Under Scrutiny

The records, stock, and ITR returns of the rice millers and brokers for the past six years have been brought under scrutiny. This tax evasion is linked to non-taxable cash transaction papers found at the premises of the rice millers and brokers. The turnover of the group exporting non-basmati rice to Vietnam and African countries is approximately ₹2000 crore. Of this, ₹1600 crore worth of business is related to raw material transactions. This entire operation involved purchasing paddy in Chhattisgarh, milling it into rice, and exporting it, thereby concealing income through bogus billing and showing inflated expenses.

The Income Tax Department is investigating the group’s activities, which involved purchasing paddy in Chhattisgarh, milling it into rice, and exporting it. To hide their income, they were showing inflated expenses through bogus billing.

Summons Issued to Transporters and Power Company Operators

Following a search of the offices of transporters and power company operators in Pandri, the TDS branch of the Income Tax Department has issued the summons. Details of total income and expenditure and TDS have been sought. They have been asked to appear at the TDS office with the relevant documents. It should be noted that the IT’s TDS wing conducted a survey on February 1 at two locations of transporters (ट्रांसपोर्टर) and power company operators. Following irregularities, the operators have been asked to account for their transactions.