I-T raids on Khoday Group unearth undisclosed income of Rs 878 crore

BENGALURU: The Income Tax (I-T) Department that carried out search and seizure operations on a major liquor manufacturer group based in Bengaluru on Tuesday has detected a total undisclosed income of Rs 878.82 crore. The I-T sleuths had raided 26 different locations across the country and sources said the raid is connected to Khoday Group, a major player in the liquor business. The taxmen raided the company’s beverage manufacturing unit, its offices and also the residence of its chief.

An official release said that the group has a large land bank that is being developed into residential and commercial properties with a Bengaluru-based builder. “The searches have unearthed incriminating evidence relating to concealment of income of over Rs 692.82 crore on account of Joint Development Projects with a major builder based in Bengaluru. Also, the group companies have fraudulently claimed expenses amounting to Rs 86 crore,” the release stated.

“In their liquor business, unaccounted sales amounting to Rs 74 crore have been detected from one of their liquor manufacturing plants in Kerala. The group companies have also claimed bogus expenses of Rs 17 crore. The Directors of the group have incurred an unexplained expenditure of Rs 9 crore attracting the provisions of Section 69C of Income-tax Act,1961,” it said.

The raids have also unearthed ‘Benami properties’ valued at Rs 150 crore in the names of their employees and associates. “In total, 35 suspected Benami properties in the names of their relatives and associates valued at over Rs 150 crore have been identified. There is also evidence of foreign assets in the name of a director of the group company,” it stated.

Income concealed in realty deal
Incriminating evidence relating to concealment of income of over Rs 692.82 crore on account of Joint Development Projects with a Bengaluru-based builder. Also, the group companies have fraudulently claimed expenses of Rs 86 crore