Home / News / India /  IT raids on pharma company in Delhi, Haryana; unaccounted cash, gold seized

The Income Tax (IT) Department has carried out search and seizure operations on a group engaged in the manufacturing and distribution of pharmaceutical medicines and real estate development.

The raid across 25 premises in Delhi-NCR and Haryana on June 29 led to seizure of unaccounted cash of 4.2 crore and jewellery or bullion worth 4 crore, said statement from the ministry of finance on Friday. The ministry, however, did not name the concerned group.

“A large number of incriminating documents in the form of loose sheets and digital data have been found and seized. These documents reveal that the group was involved in huge unaccounted sales of pharmaceutical medicines in cash," it said.

Large amount of purchases, payments of wages and other expenses were also found to have been made in cash, according to the ministry.

According to the statement, the modus-operandi of unaccounted cash sales of pharmaceutical medicines, including cash receipts through hawala for sale of medicines to Afghanistan, has been admitted by a key person involved in such transactions.

“The preliminary analysis of the seized data indicates that such hawala cash receipts amount to 25 crore approximately. In the case of one pharmaceutical concern dealing in active pharmaceutical ingredients (API), surplus stock valued at 94 crore has been found," it said.

The IT department also found that the cash generated through unaccounted cash sales has been invested in purchase of immovable properties, and in expansion of manufacturing facilities of medicines.

Further, the real estate entities of the group are found to be engaged in out-of-books sale and purchase of properties in cash. The group has also been booking “bogus long term/short term capital losses" in the securities market to offset the capital gains earned on such property transactions, the statement said.

“The amount of such bogus losses is estimated to be around 20 crore. The search action has revealed that the group has also floated benami entities to purchase immovable properties in the state of Himachal Pradesh."

Investigations in the matter are in progress, according to the ministry.


Rituraj Baruah

Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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