Huge fake transactions discovered in Binani raid

Sources in Income Tax said prima facie, bogus purchases of upto Rs 50 crore claimed by the group had been reflected in the papers seen during the raids. I-T had been working on information of alleged bogus bills raised on account of purchase of plant and machinery, bogus sales and lease back transactions, inflated costs to claim excess depreciation and introduction of bogus unverifiable credits by the group companies. The group is into cement, zinc and fibre glass manufacture.

One transaction of US $10 lakh alone is suspected of being unaccounted, and was siphoned out of the parent company, Binani Industries. Huge expenses on marriages were claimed as expenses on revenue account.

Cash seizures of Rs 90 lakh were made during the raid. Another $5,660 and IVPs of Rs two lakhs were also seized. 34 lockers are yet to be opened while jewellery worth Rs 1.59 cr already found, are under prohibitory orders.

The search on the office of one of the directors yielded cash worth Rs 58 lakh.