I-T raids in Delhi, Jaipur in tax evasion case against Rajasthan group

Income tax officials conducted search and survey operations in 20 locations across two cities in Rajasthan, and separately in New Delhi and Mumbai for alleged tax evasion by three business groups.

The searches coincided with a political crisis in Congress-ruled Rajasthan where chief minister Ashok Gehlot and deputy chief minister Sachin Pilot were engaged in a power tussle.

In Rajasthan, the searches were conducted in 20 premises in Jaipur and six locations in Kota, in the early hours of Monday. Searches were also conducted in 8 locations in Delhi and 9 locations in Mumbai. , based on information that large cash transactions had allegedly taken place and they involved the business group, said people aware of the developments.


"Several incriminating evidences in the form of loose papers/diaries/digital data have been found indicating trading in bullion in cash, investment of cash in properties etc. Further investigations are in process," the Central Board of Direct Taxes said in a statement late Monday.

One of the business groups is involved in several business activities like hotel, hydro power projects, metal and auto sectors. CBDT said that tax authorities suspected this group to have invested unaccounted income generated from these activities into real estate.

The second group is engaged in trading of silver and gold jewellery and antique silver articles and has associate enterprises in various other countries like the UK, USA etc., as well as properties and bank accounts in these countries. "The main allegation against the group is that a substantial part of its silver jewellery business is carried out outside the regular books of accounts," it added.

The third group is involved in hotel business. The source of investment in the same remains to be verified, the Board said.