May 29, 2024 14:49 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
TMC transferring SC, ST, OBC reservations to Muslims: PM Modi in Bengal | Mani Shankar Aiyar's '1962 Chinese invasion' comment sparks row, Congress distances itself after BJP ire | Supreme Court refuses to hear Arvind Kejriwal's bail plea seeking interim bail extension | Amit Shah predicts BJP's Lok Sabha seats in East and South ahead of final phase of voting | Rajkot fire: Gaming zone co-owner among those killed, police confirms today
Proof of Rs 700 cr tax evasion found during raids on Dainik Bhaskar Group: IT Dept
Dainik Bhaskar Group raids

Proof of Rs 700 cr tax evasion found during raids on Dainik Bhaskar Group: IT Dept

| @indiablooms | 24 Jul 2021, 10:01 pm

New Delhi/IBNS:The Income Tax Department has found evidence of tax evasion of Rs 700 crore, proof of illegal withdrawal of profits from listed companies in raids on Dainik Bhaskar Group, the IT Department said on Saturday, two days after the raids on the media conglomerate.

"During the search, it was found that they have been operating several companies in the names of their employees, which have been used for booking bogus expenses and routing of funds. During the search, several of the employees, whose names were used as shareholders and directors, have admitted that they were not aware of such companies and had given their Aadhaar card and digital signature to the employer in good faith. Some were found to be relatives, who had willingly and knowingly signed the papers but had no knowledge or control of the business activities of the companies, in which they were supposed to be directors and shareholders," the tax department said in a statement.

"Such companies have been used for multiple purposes namely; booking bogus expenses and siphoning off the profits from listed companies, routing of funds so siphoned into their closely held companies to make investments, making of circular transactions etc. For example, the nature of such bogus expenditures booked, vary from supply of man power, transport, logistics and civil works and fictitious trade payables. The quantum of income escapement using this modus operandi, detected so far, amounts to ₹ 700 crore spread over a period of 6 years. However, the quantum may be more as the group has used multiple layers and investigations are being carried out to unravel the entire money trail," it added.

"Application of Benami Transaction Prohibition Act will also be examined," it said, adding that violation of rules laid by the stock market regulator Securities and Exchange Board of India (SEBI) for listed companies were also found.

"Cyclical trading and transfer of funds among group companies engaged in unrelated businesses to the tune of Rs 2,200 crore has been found. The enquiries have confirmed that these have been fictitious transactions without any actual movement or delivery of goods. The tax effect and violation of other laws is being examined," the tax department said.

"The listed media company does barter deals for advertisement revenues, whereby immovable properties are received in lieu of actual payments. Evidences have been found indicating cash receipts in respect of subsequent sale of such properties. This is under further examination," it said.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.