The Income Tax Department carried out a search and seizure operation on 23.09.2021 on a group of four major Steel Rolling Mills based in Jalna, Maharashtra. These companies are engaged in the business of manufacturing steel TMT bars and billets mostly using steel scrap as raw material. The operation was conducted in more than 32 premises spread across Jalna, Aurangabad, Pune, Mumbai and Kolkata.
During the course of the search and seizure operation, many incriminating documents, loose sheets and other digital evidences were found and seized. These evidences clearly indicate the involvement of the companies in large scale unaccounted financial transactions made outside the regular books of accounts, including inflation of purchases using entry providers, unaccounted cash expenses and investments, etc. The evidences found also indicate the laundering of substantial amount of unaccounted income earned by the companies in the guise of share premium and unsecured loans using shell companies. Evidence for unaccounted purchase in excess of Rs.200 crore has been found. Huge quantity of unaccounted stock was also found in the factory premises of the companies.
12 bank lockers were unearthed during the search operation. Unaccounted cash of more than Rs. 2.10 crore and jewellery amounting to Rs. 1.07 crore has been seized from different premises. Evidence detected so far, indicates that, unaccounted income is likely to exceed Rs. 300 crore and the four companies have already disclosed additional income to the extent of Rs. 71 crore consequent to the search.
Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman has said that India needs four or five more banks like SBI. She said that we need to scale up banking to meet the changing requirements in light of shifting recent realities of economy and industry. “The way in which the economy is shifting to a different plane altogether, the way in which industry is adapting, so many new challenges keep arising. To address these challenges, we need not just more, but bigger banks.” The Union Minister shared this point of view with the banking community, during her keynote address at the 74th Annual General Meeting of the Indian Banks’ Association (IBA) in Mumbai today.
FM asks IBA to improve access to financial services pan India through scientific digitized mapping
The Finance Minister exhorted the industry to imagine how Indian banking has to be in the immediate and long-term future. “If we look at post-COVID scenario, India’s banking contour will have to be very unique to India, where there has been an extremely successful adoption of digitization. While banks in many countries could not reach out to their clients during the pandemic, the level of digitization of Indian banks helped us to transfer money to small, medium and big account holders through DBT and digital mechanisms.”
The Union Minister underlined the importance of seamless and interconnected digital systems in creating a sustainable future for Indian banking industry. “Long-term future of Indian banking is going to be largely driven by digitized processes.”
The benefits of digitization notwithstanding, the Finance Minister observed that there are wide disparities as well in access to financial services. She said there are parts of our country where brick-and-mortar banks are necessary. The FM asked IBA to improve access of banking in every district through a rationalized approach and optimal utilization of digital technologies.
To achieve this, the Union Minister advised IBA to carry out digitized location-wise mapping of all bank branches for every district of the nation. “Almost two-thirds of nearly 7.5 lakh panchayats have optical fibre connection, IBA should consider this and conduct an exercise and decide where banks should have a physical presence and where we are able to serve customers even without physical branch. IBA should take the initiative and complement government’s efforts for financial inclusion and enhancing access to financial services, especially in unserved and under-served areas.”
“Be nimble, agile, adaptive, it is a must for attaining 1 trillion dollar export target for 2030”
The Finance Minister reminded bankers of the need to adapt in line with fast changes in technology. “What we think is latest today will be outdated in a year or so, we have to thus acquire resources to constantly update ourselves.”
Such nimbleness and agility are especially important in India’s being able to achieve the ambitious export targets we have set for ourselves, she said. “We have given ourselves an export target of $ 2 trillion by 2030, $ 1 trillion in merchandise exports and $ 1 trillion in service exports. In an age of rapid change post the pandemic, there are going to be a lot of challenges in how we look at customers. These challenges cannot be addressed unless banks are going to be nimble, with sound understanding of various businesses and sectors. Hence, the banking industry needs specialists to understand the unique business requirements of diverse sectors and the many businesses who are rapidly relocating to India.”
The Finance Minister also spoke of the benefits of the recently formed Account Aggregator Framework. “If the framework is put to good use, we would not need specialized credit outreach. Govt. together with RBI has been helping with protocols and frameworks, helping banks attain more through the digital systems in the industry.”
The Finance Minister also spoke of the high potential for banking outreach in the eastern region of the country. “The eastern region of this country has more than adequate CASA (Current Account Saving Account), but there are no takers for credit; you need to address this issue and see how you can lend in those regions, in states such as Bihar.”
“Strengthen UPI”
The Finance Minister said that UPI needs to be strengthened. “In the payment world today, Indian UPI has actually made a very big impression. A RuPay card which was not as glamorous as a foreign card is now accepted in so many different parts of the world, symbolic of India’s futuristic digital payment intentions.” FinTech understands that UPI is its backbone, you have to give it its flesh and blood, you have to strengthen UPI, the Minister advised bankers.
“You ensured that bank amalgamation happened without friction”
The Finance Minister appreciated banks for executing amalgamation of banks even during the COVID-19 pandemic, without causing disruption in services to customers. “I commend that you ensured that amalgamation did not inconvenience customers, you ensured that systems of different banks spoke to each other, you have kept yourselves available during the pandemic in serving customers, while also ensuring that banks’ amalgamation happened without friction, without aberrations”, the Minister said.
“NARCL is not a bad bank”
Smt. Sitharaman thanked IBA for having come together in establishing the National Asset Reconstruction Company Ltd. and India Debt Resolution Company Ltd. “Working together, NARCL and IDRCL would be able to restructure and sell the NPAs.”
The Minister asserted that NARCL is not a bad bank. “It is a formulation which is intended to clean up banks’ assets and dispose of NPAs in a speedy manner. Banks are now able to raise money from the market, hence the burden on govt. to recapitalize banks will be less, this is how we want banks to function – a lot more professional, with a changed mindset.” The Finance Minister said that this is absolutely the right time to become professional. Bank valuations should be razor-sharp, enabling you to raise the right kinds of amount at the right cost, she said.
“Private sector DFIs needed to finance development needs”
The Minister underlined the importance and need for Development Finance Institutions, even in the private sector. ”Govt. is coming up with a Development Finance Institution, at the same time, we have made enough provisions for DFIs to come up in the private sector as well. We hope there is going to be good competition between public and private sector DFIs, so that money is available at competitive prices.”
The FM recalled that the Prime Minister has said that there needs to be a change and reset in our mindset and ways of living and hoped that IBA lives up to this invocation. “We are at a very critical stage of the Indian economy, you are the backbone for it, I wish IBA rises to this occasion and provides India the best of financial services.”
The Minister called for a reimagination and sprucing up of banks’ corporate communications, in line with changing realities of the new digital and connected age. Smt. Sitharaman, at the beginning of her address, paid homage to all members of the banking industry who lost their lives serving the nation through the COVID-19 pandemic.
MoS Bhagwat Karad commends banks for taking benefits of financial packages to people
Minister of State for Finance Dr. Bhagwat Kishanrao Karad commended banks for taking to the public the benefits of various financial stimulus packages including Aatma Nirbhar Bharat package, announced by the government in view of COVID-19 pandemic. The Minister said that all banks have to take special efforts in implementing EASE 3.0 and 4.0 Reforms and modernize banks. He also underlined the role of JAM Trinity, which is playing an important role in Direct Benefits Transfer, in taking govt. benefits directly to the people.
Earlier, Chairman of Indian Banks’ Association (IBA) Shri Rajkiran Rai G. welcomed the gathering, while Chief Executive, IBA, Shri Sunil Mehta gave a presentation on the 75-year journey of the Association. A detailed snapshot of this journey can be found in this IBA document here.
Secretary and Managing Committee Members of IBA; Managing Directors, CEOs and Executive Directors of the member banks of the Association too were present at the meeting. The programme can be watched here.
The Competition Commission of India (‘CCI’) passed a final order against three beer companies, namely United Breweries Limited (‘UBL’), SABMiller India Limited (now renamed as Anheuser Busch InBev India Ltd. after being acquired by Anheuser Busch InBev SA/NV) (‘AB InBev’) and Carlsberg India Private Limited (‘CIPL’) for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India, including through the platform of All India Brewers’ Association (‘AIBA’).
As AIBA was found to be actively involved in facilitating such cartelisation, CCI also held AIBA to be in contravention of the provisions of Competition Act, 2002 (the ‘Act’), apart from the beer companies. The period of cartel was held to be from 2009 to at least 10.10.2018 (the date on which the Director General (‘DG’) conducted search and seizure operations at the premises of the beer companies), with CIPL joining in from 2012 and AIBA serving as a platform for facilitating such cartelisation since 2013. All three beer companies were lesser penalty applicants before CCI.
Based on evidences of regular communications between the parties collected by the DG during search and seizure, and on the basis of the disclosures made in the lesser penalty applications, CCI found that the three companies engaged in price co-ordination in contravention of the provisions of Section 3(3)(a) of the Competition Act, 2002 (the ‘Act’) in the States of Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry, in collectively restricting supply of beer in the States of Maharashtra, Odisha and West Bengal in contravention of the provisions of Section 3(3)(b) of the Act, and in sharing of market in the State of Maharashtra as well as co-ordination with respect to supply of beer to premium institutions in the city of Bengaluru in contravention of the provisions of Section 3(3)(c) of the Act. CCI also found co-ordination amongst UBL and AB InBev with respect to purchase of second-hand bottles. Further, 4 individuals of UBL, 4 individuals of AB InBev, 6 individuals of CIPL and the Director General of AIBA, were held by CCI to be liable for the anti-competitive conduct of their respective companies/ association, in terms of Section 48 of the Act.
Giving benefit of reduction in penalty under the provisions of Section 46 of the Act of 100% to AB InBev and its individuals, 40% to UBL and its individuals and 20% to CIPL and its individuals. The CCI directed UBL and CIPL to pay penalties of approx. Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.
In its continued crackdown on smuggling of Heroin into India,Directorate of Revenue Intelligence (DRI) detained two containers on 13.09.2021for examination that had arrived at Mundra Port from Kandhar, Afghanistan via Bandar Abbas, Iran. The containers were declared to contain Semi-processed Talc Stones. Detailed examination of the containers led to the seizure of 2988 kgs of heroin from the two containers on 17.09.2021 and 19.09.21.
The heroin was concealed in jumbo bags said to contain unprocessed talc powder. The heroin was placed in the lower layers of the bags. The heroin was then topped with Talc stones to avoid detection. Resultantly, the heroin had to be painstakingly separated from the Talc Stones.
Immediate follow-up operations were carried out in New Delhi, Noida (UP), Chennai, Coimbatore, Ahmedabad, Mandvi, Gandhidham and Vijaywada. This led to recovery of 16.1 kgs of heroin from a Godown in Delhi, 10.2 kgs powder suspected to be cocaine and 11 kgs of substance suspected to be heroin from a residential place in Noida.
A total of eight (8) persons including four (4) Afghan nationals, one (1) Uzbek National and three (3) Indian nationals have been arrested in the case so far. Thearrested Indian Nationals include the holder of the Import Export Code (IEC), which was used to import the consignment. He was arrested from Chennai. Investigations are in progress.
The Income Tax Department carried out a search and seizure operation on 17.09.2021 on a prominent group engaged in manufacturing of steel products. 25 premises consisting of 8 residences, 9 offices and 8 factories, spread over Kolkata, Durgapur, Asansol and Purulia and other regions of West Bengal were covered in the operation.
The search operation has led to the detection of huge quantity of incriminating documents and digital evidence from different premises. Evidences pertain to generation of unaccounted income by the group by way of unaccounted cash sales, unaccounted cash expenditure, purchase from bogus parties, under-reporting of actual production, cash purchases of scrap, several documents of land purchases and sale etc. Evidence has also been found pertaining to the utilisation of the unaccounted income in the form of unsecured loans and sale of shares of shell entities though layering of the unaccounted income. A large number of property documents pertaining to one of the members of the group, showing land and property holding in different names, have also been seized. The total amount of such incriminating evidences pertaining to the manufacturing group exceeds Rs. 700 crore. The operation has led to seizure of unaccounted cash amounting to Rs.20 lakh while 2 lockers remain to be operated.
During the search operation, an accommodation entry provider, who was providing entries to the searched group, was also covered. From his secret back office, huge number of incriminating documents pertaining to providing accommodation entries through modes like sale of shares of shell companies, unsecured loans from shell entities, bogus billing, etc. have been found, the total amount of which runs into several hundreds of crores of rupees. Evidence of more than 200 companies/entities having more than 200 bank accounts being managed from the entry operator’s premises have been found. On the basis of preliminary examination of these documents, it appears that these bank accounts and entities have been used as conduit to route the unaccounted income of many beneficiaries.
The Income Tax Department carried out a search and seizure operation on 18.09.2021 on a leading business house of India involved in manufacture of textile and filament yarn having corporate offices in Delhi, Punjab and Kolkata.
During the course of the search operation, many incriminating documents, loose sheets, diaries, digital evidences etc have been recovered which indicate involvement of the group in routing of unaccounted funds back in its Indian entities, possession of foreign bank accounts unreported to the Department. Substantial evidence of transactions outside the books of accounts, cash transactions in land deals, bogus expenses debited in books of accounts, unaccounted cash expenditure, accommodation entries taken from entry operators have been gathered.
The group has maintained unaccounted funds of about Rs. 350 crore in its foreign bank accounts and has also routed these funds back into its business through shell entities in tax havens. The modus operandi detected was related to investment by foreign entities, under control of the group, in Foreign Currency Convertible Bonds, issued by its main concern, and subsequently under the garb of defaulting on payments, converting it into shares of the company. It was also seen that foreign companies and trusts were being paid management fees for managing the unaccounted funds. Though there is a specific requirement of disclosing foreign assets owned/managed in the form of companies and bank accounts in Schedule FA in Income Tax Returns, the same has not been disclosed by the group to the Department.
Details of accounts related to unexplained personal expenditure in cash were found to be meticulously maintained in one of the main offices of the company. Evidence has been gathered that cash of about Rs. 100 crore was generated by debiting bogus expenditure in company accounts and cash transactions in land deals.
The search operation is still continuing and further investigations are in progress.
The Income Tax Department carried out a search and seizure operation on 17.09.2021 in the case of a prominent public figure in Nagpur and his family members. The group is having wide business interest spanning the fields of Education, Warehousing and Agri-business in Nagpur and other parts of Maharastra. More than 30 premises were covered in the search and survey operations spread across Nagpur, Mumbai, New Delhi and Kolkata.
During the course of the search and seizure operation, many incriminating documents, loose sheets and other digital evidences were found and seized. These evidences clearly indicate the involvement of the group in unaccounted financial transactions made outside the regular books of accounts including inflation of expenses, money laundering, bogus donation receipts, unaccounted cash expenses etc. Evidence for receipt of bogus donation in the hands of the Trust run by the assesse group through money laundering, using Delhi based companies to the extent of Rs.4.00 crore has been found. This clearly substantiates the laundering of the unaccounted income of the assessee routed as donation to the Trust. Further, specific evidences have been unearthed which reveal that three Educational Institutions of the Trust have indulged in inflation of expenses in which salaries paid to the employees were partly collected back in cash. Such evidences were found for several financial years amounting to more than Rs.12 crore. During the search, it was also detected that the Trust, apart from suppression of receipts, has paid substantial amounts to brokers for arranging admissions. Such payments, to the tune of about Rs.87 lakh have been paid in cash and are completely unaccounted.
Evidence found during the search clearly indicates concealment of income to the extent of about Rs.17 crore. Several bank lockers found during the course of the search operation have been put under prohibitory orders. The evidence gathered during the search is being examined and further investigations are in progress.
Government to start and institutionalise 24 hours “Helpline” for assistance to exporters and resolution of issues- Shri Piyush Goyal
Our aim is to make ‘Brand India’ a representative of quality, productivity, talent & innovation – Shri Piyush Goyal
Vanijya Saptah shows our strong resolve in Building a strong India of Tomorrow- Shri Goyal
Uttar Pradesh has made a commendable progress in Industrial growth and Exports – Shri Piyush Goyal
Shri Piyush Goyal launches nationwide Vanijya Saptah” at SEZ NOIDA to commemorate Azadi ka Amrit Mahotsav.
Improvement in Law and order has made doing business and trade much easier and safer in UP: – Shri Goyal
Need to jointly create a road map for next 25 years and contribute to make India a world leader in Business and Trade – Shri Goyal
75 years ago all worked to get Swarajya, now all must work. Mission mode to be Aatmanirbhar- Shri Piyush Goyal
“Government is going to Institutionalise a 24 hours “Helpline” for assistance to exporters and resolution of issues “said Shri Piyush Goyal today at the launch of nation wide celebrations of iconic week for Amrit Mahotsav for Commerce & Industry Ministry .
Shri Piyush Goyal said that our aim is to make ‘Brand India’ a representative of quality, productivity, talent & innovation”, while delivering “Keynote address at Launch of Vanijya Saptah” at SEZ NOIDA to commemorate Azadi ka Amrit Mahotsav.
It may be noted that Commerce and Industry Ministry is launching 7 days of special events across the country today to celebrate & commemorate 75 years of progressive India as part of the ‘Azadi Ka Amrit Mahotsav’ celebrations
Shri Goyal said that Uttar Pradesh has made a commendable progress in Industrial growth and Exports Improvement in Law and order has made doing business and trade much easier and safer in UP.
He added that there was need to jointly create a road map for next 25 years and contribute to make India a world leader .
The Minister said that reforms in social sectors have made the development wholesome .Path breaking Expansion of health programs, Toilets Infrastructure have been a major success and made the devlopment inclusive.
Availability of electricity, cooking gas to households have made an extra ordinary impact on lives of crores of citizens of the country, who never had those benefits before.
Shri Goyal said that PM Modi’s call for ‘Azadi Ka Amrit Mahotsav’ is a tribute to our freedom fighters & freedom movement and it is an opportunity for us to inspire & reignite new fervour, exuberance & enthusiasm
The Minister said that ‘Vanijya Saptah’ embodies a pan-India character and will reflect spirit of Jan-andolan and Jan-bhagidari
Ministry of Commerce & Industry has curated Vanijya Saptah has been around the 5 pillars of Azadi ka Amrit Mahotsav i.e. Freedom Struggle, Ideas @ 75, Achievements @ 75, Actions @ 75 and Resolves @ 75. Some of activities planned during this week include –
○Inclusive activities for stakeholders, States & people’s participation highlighting Aatmanirbhar Bharat, showcasing India’s rise as economic force
○Sessions focusing on ‘From Farm to Foreign Lands’ (>10 lakh tea plantation participants)
○ ‘Vanijya Utsav’ covering all 739 districts
○ 35 Export Promotion Events / Exhibitions, in each State / UT by EPCs
○ Virtual Investor Summit in North East
○ Swachhta campaign & tree plantation by 250 SEZs
○ 5 National Seminars / exhibitions and National Essay competition, etc. will be organised
Shri Goyal added that 75 years ago all worked to get Swarajya, now all must work in mission mode to be Aatmanirbhar. Modi Govt as a facilitator of this mission has introduced several reforms for inclusive growth.
The Minister for Commerce & Industry, Textiles, Consumer Affairs, Food & Public Distribution said that Centre has taken a series of measures to give further impetus to growth and job creation like Reduction in Corporate Tax, Liberalisation of FDI Regime, Single Window Clearance, ODOP, etc.
Shri Goyal added that despite COVID-19, due to decisive & bold leadership of PM, our economy is reviving and exports are increasing significantly.
The Minister noted that FDI Inflows are highest & industry is on a high growth path. He said that FDI has increased by 10% to $ 81.72 bn from $ 74.39 bn (2019-20) and highest ever merchandise exports have been recorded in a quarter (Q1 2021-22, $ 95 bn)
The Income Tax Department conducted a search and seizure operation at various premises of a prominent actor in Mumbai and also a Lucknow based group of industries engaged in infrastructure development. Total 28 premises spread over Mumbai, Lucknow, Kanpur, Jaipur, Delhi, and Gurgaon have been covered in the search operation.
Video :
Tax Department conducts searches on prominent actor in Mumbai and other regions (Ministry of Finance Press Release dated 18-09-2021)
During the course of search at the premises of the actor and his associates, incriminating evidences pertaining to tax evasion have been found. The main modus operandi followed by the actor had been to route his unaccounted income in the form of bogus unsecured loans from many bogus entities. Investigations so far have revealed use of twenty such entries, the providers of which,on examination, have accepted on oath to have given bogus accommodation entries. They have accepted to have issued cheques in lieu of cash. There have been instances where professional receipts have been camouflaged as loans in the books of accounts for the purpose of evasion of tax. It has also been revealed that these bogus loans have been used for making investments and acquiring properties. The total amount of tax evaded unearthed so far, amounts to more than Rs. 20 crore.
The Charity Foundation incorporated by the actor on 21st July, 2020 has collected donations to the tune of Rs 18.94 crore from 01.04.2021 till date, out of which it has spent around Rs. 1.9 crore towards various relief work and the balance of Rs. 17 crore has been found lying unutilized in the bank account of the Foundation till date. It is seen that funds to the tune of Rs. 2.1 crore have also been raised by the Charity Foundation from overseas donors on a crowd funding platform in violation of FCRA regulations.
The simultaneous search operations carried out at various premises of an Infrastructure group in Lucknow in which the said actor has entered into a joint venture real estate project and invested substantial funds, have resulted in unearthing of incriminating evidences pertaining to tax evasion and irregularities in the books of account.
The search has revealed that the said Group is involved in bogus billing of subcontracting expenses and siphoning off of funds. Evidences of such bogus contracts found so far are to the tune of over Rs. 65 crore. Evidence of unaccounted cash expenses, unaccounted sale of scrap and digital data evidencing unaccounted cash transactions has also been found. Further, it has been unearthed that the said Infrastructure Group/company has entered into dubious circular transaction to the tune of Rs. 175 crore with an infrastructure company based in Jaipur. Further investigations are being carried out to establish the full extent of tax evasion.
Cash of Rs 1.8 crore has been seized during the course of the search and 11 Lockers have been placed under prohibitory order.
The search operation is still continuing and further investigations are in progress.
The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act, 1961 (hereinafter referred to as “the Act”) in the following cases, as under:
Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended from 30th September, 2021 to 31st March, 2022.
The due date for completion of penalty proceedings under the Act has also been extended from 30th September, 2021 to 31st March, 2022.
Further, the time limit for issuance of notice and passing of order by the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988 has also been extended to 31st March, 2022.
Notification no. 113 of 2021 dated 17th September, 2021 has been issued in this regard and can be accessed at www.incometaxindia.gov.in.
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