I-T raid on Karnataka construction major nets Rs 70 crore

Tribune News Service

New Delhi, November 3

An Income Tax Department raid on a leading construction group in Karnataka has led to detection of unaccounted income of more than Rs 70 crore some of which was routed through relatives and friends claiming to be subcontractors.

The target group had admitted this amount as undisclosed income, said an official news release.

The I-T Department had carried out the search and seizure operations on a leading group of Karnataka “engaged in the civil construction of roads and irrigation projects”, on October 28 at several locations in north Karnataka.

“The search operation has revealed that this group has been suppressing its profits by booking bogus expenses in purchase of materials, labour expenses and payment to subcontractors,” stated the release.

“Various incriminating documents, including digital evidence, indicating non-genuine claims of such expenses, have been found and seized,” it added, claiming that their analysis showed that unaccounted cash was received by the key group person from vendors and suppliers of materials.