In a follow-up action in the ongoing probe against financial transactions linked to J&K Bank, the Income-tax Department Tuesday said it conducted a search and seizure operation on premises of a business group leading to seizure of unaccounted jewellery and undisclosed cash of more than Rs 1.28 crore from the promoter of the group.
The tax department in its statement said that the search action revealed apparent siphoning of loans obtained from various public sector banks of more than Rs 74 crore and also revealed “concrete leads” of round tripping of more than Rs 125 crore by the promoters of the group.
“Digital and documentary evidences found during search also clearly reflect machinations of the bank officials in violating prudence norms as well as rules of business to safeguard the banks’ interest in grant of loans that exceed Rs 200 crore. These loans have subsequently become NPAs,” the statement said.
Without naming the group in its official release, the income tax department said the group provides security to business establishments and prominent individuals along with running hotels in J&K and other parts of the country. The searched group also held a controlling share in a medical college in Punjab, which had been ordered to be closed by the Medical Council of India in 2014.
Also, to obtain a large tranche of loan from the J&K Bank, the tax department said that the group falsely claimed that 60 rooms of hotel being constructed by them at Mumbai had become operational and cash flow was being generated from such operations. However, the agency said, it was found that the hotel building was under construction and was nowhere near completion.
The I-T team also found evidence of “dummy” manpower expenses as a large number of cheques were issued to fictitious persons, who were supposedly on the rolls of the group for providing security to businesses and prominent individuals, it said.