Tax Evasion On Rs 700 Crore Found In Dainik Bhaskar Raids: Tax Department

New Delhi:

Unpaid taxes on Rs 700 crore of earnings over six years, violation of inventory market guidelines, and proof of income being siphoned off from listed firms have been present in searches on the Dainik Bhaskar Group, the Earnings Tax Division mentioned on Saturday, two days after the raids on the conglomerate with media retailers crucial of the federal government triggered outrage.

“Through the search, it was discovered that they’ve been working a number of firms within the names of their staff, which have been used for reserving bogus bills and routing of funds. Through the search, a number of of the staff, whose names had been used as shareholders and administrators, have admitted that they weren’t conscious of such firms and had given their Aadhaar card and digital signature to the employer in good religion. Some had been discovered to be relations, who had willingly and knowingly signed the papers however had no data or management of the enterprise actions of the businesses, wherein they had been speculated to be administrators and shareholders,” the tax division mentioned in an announcement.

“Such firms have been used for a number of functions particularly; reserving bogus bills and siphoning off the income from listed firms, routing of funds so siphoned into their carefully held firms to make investments, making of round transactions and so on. For instance, the character of such bogus expenditures booked, range from provide of man energy, transport, logistics and civil works and fictitious commerce payables. The quantum of earnings escapement utilizing this modus operandi, detected thus far, quantities to Rs 700 crore unfold over a interval of 6 years. Nevertheless, the quantum could also be extra because the group has used a number of layers and investigations are being carried out to unravel all the cash path,” it added.

The tax division mentioned it had additionally discovered violation of guidelines prescribed by the the inventory market regulator Securities and Trade Board of India (SEBI) for listed firms. “Utility of Benami Transaction Prohibition Act can even be examined,” it mentioned.

“Cyclical buying and selling and switch of funds amongst group firms engaged in unrelated companies to the tune of Rs 2,200 crore has been discovered. The enquiries have confirmed that these have been fictitious transactions with none precise motion or supply of products. The tax impact and violation of different legal guidelines is being examined,” the tax division mentioned.

“The listed media firm does barter offers for commercial revenues, whereby immovable properties are acquired in lieu of precise funds. Evidences have been discovered indicating money receipts in respect of subsequent sale of such properties. That is beneath additional examination,” it mentioned.

“Evidences have been discovered which point out receipt of on-money in money, on sale of flats by the fact arm of the group. The identical has been confirmed by 2 staff and 1 director of the corporate. The modus operandi in addition to the corroborating paperwork have been discovered. The precise quantity of out-of-books money receipts are being quantified,” it added.