Instances of tax evasion that amounts to about Rs 650 crores were detected by the Income Tax department’s sleuths. The incidents all come from the Braj region and had taken place after demonetization. The evasions were orchestrated by local jewelers and bullion traders who converted demonetized money into new legal tenders during that period. The IT department uncovered this after over a year of deep analysis of transactional data.

With relation to tax evasion and money laundering, names of a number of political leaders of the center and state have cropped up in the investigation by the IT sleuths who had been conducting a number of surveys in the region over the last few days. The entire scam can be over Rs 650 crores even as investigations are still on going.

On the day right after the announcement of demonetization, sale of Rs 37 crores was shown by RS Bullion in Mathura. This data information came to light during the survey.

The news of the survey resulted in two businessmen falling ill and who had to be later admitted to a local hospital.

The names of a number of public representatives and political leaders who had made use of the services of RS Bullion for conversion of black money into white, have cropped up in the documents that the IT department has found in the survey that lasted for over 40 hours.

Sources have said that BJP leaders were openly helped in the conversion of black money into white by most of the Bullion businessmen because they are themselves supported of the BJP.

Documents of ‘Benami’ properties have been recovered by the IT department in raids that were conducted in 31 offices of bullion traders in various cities of the region during the last 3-4 days, sources said. In order to hide cash worth crores, dozens of bogus entries in their account books had been made by three bullion groups. The IT department is still investigating this side of the case to ascertain the magnitude of the evasion.

Papers for several Benami properties have also been recovered form RS Bullion, said IT sources to the media. The sources said that the firm even owns a gold refinery in Faridabad. The account books of the firm show false entries to the tune of Rs. 123 crores and which were made in the names of non-existing companies. The IT department has seized all of the properties of RS Bullion.

False entries to the tune of Rs. 60 crores were found in the books of bullion trader Ajay Awagarh and false records of Rs. 25 crores were found in the books of silver importer Sushil Chauhan.

Firms in the Agra bullion market remained closed for the fourth consecutive day because of fears of more raids. Apart from the IT department, the commercial tax department is also conducting similar surveys of these firms.

(Adapted from