income tax

Income Tax Department Busts Major Syndicate in Maharashtra: Key Findings and Implications

Income Tax Department Unveils Major Syndicate in Maharashtra

The Income Tax Department initiated a search operation on 23.09.2021, targeting a significant syndicate involving several businessmen, middlemen, and public officials in Maharashtra. This operation was the culmination of six months of intelligence gathering.

Search Operation Scope

The operation covered:

  • 25 residential premises
  • 15 office premises
  • 4 offices under survey
  • Suites in Oberoi Hotel, Mumbai, utilized by two middlemen for client meetings

The total financial transactions identified during this extensive search amounted to approximately Rs. 1,050 crore.

Syndicate Operations

The syndicate provided comprehensive services to corporates and entrepreneurs, facilitating processes such as land allotment and obtaining various governmental clearances. Despite employing encrypted communication and sanitizing devices, Income Tax teams successfully recovered critical digital evidence and uncovered a secret hideout, yielding various incriminating items. Notably, Rs. 1.5 crore was seized from one of the ‘angadiyas’ involved in cash transfer operations.

Key Findings and Evidence

The documents recovered included a detailed summary of cash generation and disbursement, itemizing amounts received and payable, each exceeding Rs. 200 crore. Notable sources of funds included:

  • Cash payments made by bureaucrats for key Ministry postings
  • Payments from contractors to expedite the release of funds

A considerable portion of the cash collected was allocated to various individuals, including those referred to by code names.

Additionally, evidence indicated that one middleman amassed substantial unaccounted income by purchasing land from farmers for subsequent transfer to government entities and large corporations. Investigations revealed investments from senior bureaucrats, their relatives, and other prominent figures in these schemes.

Transaction Analysis

Evidence from office premises revealed:

  • Cash deposits: Approximately Rs. 27 crore
  • Cash payments: Approximately Rs. 40 crore
  • Cash payments totaling Rs. 23 crore were linked to individuals known by code words

Moreover, a WhatsApp chat revealed cash transaction details, showing receipts of around Rs. 16 crore and payments amounting to Rs. 12 crore. Some individuals involved also have real estate and construction businesses, with evidence of cash flows pertinent to those operations.

Digital Evidence and Seizures

The operation resulted in the recovery of substantial digital data from mobile phones, pen drives, hard drives, iCloud accounts, emails, and more, all of which is currently under examination and analysis.

To date, the enforcement team has seized over Rs. 4.6 crore in cash and jewelry valued at Rs. 3.42 crore. Additionally, four lockers discovered during the search have been placed under restraint orders.

Conclusion

The investigations are ongoing, aiming to uncover further details about the syndicate’s operations and the extent of involvement by public officials and business entities. This operation exemplifies the Income Tax Department's commitment to combating financial malpractice and ensuring accountability in public service.