Raids on Shree Cements expose Rs 23,000 crore tax fraud: IT officials

In wake of the raids on the Shree Cement Group, Income Tax officials have seized documents indicating tax fraud to the tune of at least Rs 23,000 crore, sources said on Sunday.

Income Tax Department officials said that a scrutiny of the documents found in the raid has revealed that almost Rs 1,200 to 1,400 crores tax evasion was reportedly done every year.

The raids came after IT Department officials doubted the tax deduction claims of the group, they added.

On the other hand, it was also reported that the Centre and the state governments incurred losses via fake agreements made by the sarpanch, gram panchayat and the local bodies concerned and the Income Tax Department officials have also seized the agreements related to the forgery.

According to the information from the Income Tax Department, when the members of the group were questioned in this matter, they denied having any information in this regard.

Shree Group's Chairman H.N. Bangur and Vice Chairman Prashant Bangur have moved out after the raids. Group's Joint President Arvind Khicha was reportedly called for questioning several times during the raids but he too did not appear before the Income Tax officials. Officials are also unable to contact senior officials of the firm.

A team from the Income Tax Department's Jaipur office had raided more than 24 locations of Shree Cement in Jaipur, Beawar, Udaipur, Ajmer, and Chittorgarh. More than 200 Income Tax officers and policemen were involved in this raid.

According to IT officials, there were huge irregularities in the accounts of coal purchased for cement production and the payment made for this and the department detected this fraud with the help of new technology and software.

On this basis, the department found differences between income tax exemption claimed by Shree Cement and what was really due. It was on the basis that the action followed against the company.

Income Tax Department officials also said that a few other companies also on their radar, and they may soon conduct a survey on real estate and mining companies and other big businessmen.