Mumbai: Income Tax officials have raided the offices of Hubtown Ltd and has found evidence to evade income worth around 700 crore, said two people aware of the development.

A statement issued by Press Information Bureau (PIB) said the Income Tax Department has conducted search and seizure operation on 29 July on a prominent Mumbai-based developer. The search spanned across 40 premises of the company in both Mumbai and Pune. However, it has not revealed the name of the real estate firm.

Two people in direct knowledge of the matter confirmed that the IT raids have happened at the premises of Hubtown Ltd, formerly known as Akruti City Ltd. Repeated calls and messages to Vimal Shah, managing director of Hubtown, remain unanswered till the of going to press.

"During the course of operation, the department unearthed evidences related to receipt of ‘On Money’ on sale of commercial and residential blocks, bogus unsecured loans taken, bogus long term capital gains and various other sham transactions to evade income aggregating to about 700 crore," the IT department said.

"The IT sleuths have found "peculiar transactions wherein by way of accounting jugglery, income on transactions worth about 525 crore has been evaded," it said.

‘On Money’ receipt on sale of Residential /Commercial Blocks amounting to 100 crore has been corroborated during the search. "Incriminating evidence was unearthed pertaining to modus operandi establishing the introduction of accommodation loans by the group, which have been found to be bogus," the statement added.

Besides, jewellery worth around 14 crore have also been found during the search, according to the statement by PIB, adding investigation and search action is still in progress.