Introduction: The Income Tax Department, under the aegis of the Ministry of Finance and the Department of Revenue, conducted a significant Search & Seizure operation on December 6, 2023. The focus of the operation was a conglomerate engaged in diverse sectors, including the manufacture and sale of country liquor, grain-based alcohol, bottling of foreign liquor, running hospitals, and educational institutions. The operation spanned more than 30 premises across 10 districts in Odisha, Jharkhand, and West Bengal, with the business being controlled by a family based in Ranchi, Jharkhand.
Detailed Analysis: The search operation yielded a plethora of incriminating evidence, comprising both physical documents and digital data. Preliminary analysis exposed records of unaccounted sales of country liquor, systematic details of undisclosed cash receipts, and references for the movement of unaccounted cash. Crucially, key personnel responsible for the group’s business activities admitted that the seized cash represented the unaccounted income generated through multiple business concerns.
One of the startling revelations during the operation was the group’s substantial suppression of income earned from the liquor business. The findings indicated a systematic effort to conceal income through various means. Notably, the operation led to the seizure of undisclosed cash exceeding Rs. 351 crore and unaccounted jewelry worth more than Rs. 2.80 crore.
A significant portion of the seized cash, totaling Rs. 329 crore, was discovered in obscure and dilapidated buildings, hidden chambers, and camouflaged safe-houses presented as unoccupied residences. Locations such as Sudapada and Titlagarh in Bolangir District and Khetrajrajpur in Sambhalpur District housed these clandestine repositories.
The implicated family, based in Ranchi, was found to have political exposure, with one of its members being a Politically Exposed Person residing in Ranchi. The gravity of the findings underscores the extensive network and intricate strategies employed by the group to evade taxes and conceal their financial dealings.
Conclusion: The search operation conducted by the Income Tax Department in Odisha, Jharkhand, and West Bengal has unearthed a massive tax evasion scheme orchestrated by a conglomerate involved in diverse business activities. The discovery of unaccounted income, systematic suppression of liquor business earnings, and the seizure of substantial amounts of cash and jewelry highlight the magnitude of the illicit financial activities.
As investigations continue, the findings shed light on the challenges faced by tax authorities in curbing sophisticated tax evasion practices. The case underscores the need for stringent measures and collaborative efforts to ensure the integrity of the taxation system and deter individuals and entities from engaging in fraudulent financial practices. The Income Tax Department remains committed to pursuing further investigations to bring those responsible for tax evasion to justice and uphold the principles of fiscal responsibility and transparency.
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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New Delhi, 21st December, 2023
Press Release
Income Tax Department conducts search operations in Odisha, Jharkhand and
West Bengal
Income Tax Department conducted a Search & Seizure operation on a group, engaged in the business of manufacture and sale of country liquor, grain-based alcohol, bottling of foreign liquor, running hospitals and educational institutions, etc. on 06.12.2023. This operation covered more than 30 premises spread across 10 districts in the States of Odisha, Jharkhand and West Bengal. The business of the group is controlled by a family based in Ranchi, Jharkhand. One of the family members of the group is also a Politically Exposed Person residing at Ranchi.
During the search operation, a large number of incriminating evidence in the form of documents and digital data has been found & seized. Preliminary analysis of seized evidence reveals records of unaccounted sales of country liquor, systematic details of undisclosed cash receipts and references for movement of unaccounted cash. The main employees looking after the business activities of the group, have admitted that the cash found and seized during the search operation, represents the unaccounted income of the group, generated through its multiple business concerns. This was also corroborated by one of the family members who is actively involved in the business. The facts unearthed during the search operation indicate that the group has been indulging in huge suppression of income earned from the liquor business.
The search operation has also resulted in seizure of undisclosed cash amounting to more than Rs. 351 crore and unaccounted jewellery exceeding Rs. 2.80 crore. A substantial part of the cash, to the tune of Rs. 329 crore, was unearthed and seized from obscure & dilapidated buildings, hidden chambers and hidden safe-house camouflaged as an unoccupied/nondescript residence located in small towns of Odisha including Sudapada and Titlagarh in Bolangir District and Khetrajrajpur in Sambhalpur District.
Further investigations are in progress.
(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT
