Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 11th November, 2019


Income Tax Department busts a major racket of bogus billing & hawala transactions

Income Tax Department carried out searches in the first week of November, 2019 on a group of persons indulging in issuing bogus bills and carrying on hawala transactions. The search operations covered 42 premises across Delhi, Mumbai, Hyderabad, Erode, Pune, Agra & Goa.

The search operations resulted in busting of a major racket of cash generation by leading corporate houses in the infrastructure sector through bogus contracts/bills. Funds meant for public infrastructure projects were siphoned off through entry operators, lobbyists and hawala dealers. The companies involved in siphoning of funds are mostly located in NCR and Mumbai. One such company was earlier searched by Income Tax Department in April, 2019.

The projects involved in bogus billings are major infrastructure and EWS projects located in Southern India. Evidence of cash payment of more than Rs. 150 crore to a prominent person in Andhra Pradesh has also been unearthed during the search.

The search action was successful in unearthing incriminating evidences and establishing the nexus between big corporates, hawala operators and identification of entire chain of delivery, as well as siphoning of funds by way of bogus contracts to the tune of Rs. 3300 crore. Unexplained cash of Rs 4.19 crore and jewellery in excess of Rs 3.2 crore was also seized during the search operation.

(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT.

More Under Income Tax

One Comment

  1. Gopal says:

    Undoubtedly, payment of cash of Rs 150 crores to a prominent person in Andhra Pradesh directly links to Chandrababu,s TDP and its political leaders since the contract companies involved in Amaravati Capital city, PMRY houses and Polavaram are openly patronize d by Chandrababu by manipulating tenders in favour of the contractors like Shapoorji, L&T ,Nagarjuna etc., Now it depends on PM Modi, whether he will succumb to Chandrababu’s crooked enticing or impartial probe will be conducted by filing a case in court

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