Income Tax department has recovered additional Rs 91 lakh during its search and seizure operations at Ahmedabad-based Kushal Ltd, a top official in the department told media persons here on Thursday. This is the third consecutive day of operations against the company.
Till now the department had recovered Rs 59 lakh worth of cash and Rs 4.82 crore worth of jewellery. "Two employees of the company have confessed about the rigging of stock price was on the directions of Mahendra Agrwal. The movement in prices of the company's share was not market driven. A big cartel was driving the prices of stocks," said the official.
The company also evaded taxes by transferring profits to the foreign-based fully owned subsidiary. They then paid a 10 per cent dividend to parent company based in Ahmedabad.