The investigation wing of the Income Tax (I-T) department in Mumbai has searched for 29 premises spread over Mumbai, Delhi, Surat, Jaipur, Pune and Kolkata on February 15th and found that an gaming and betting company run by Ramesh Chaurasia and Achal Chaurasia had cash turnover of Rs 600 crore in the past six months. The cash was routed through “shell companies” and “hawala channels” and introduced in its books of accounts in the form of “accommodation entries”.
The tax department has provisionally attached its investment in listed shares worth Rs 550 crore and 30 bank accounts for alleged tax evasion.
“The search revealed that the group has been introducing its unaccounted cash into books of account as unsecured loans, security premium, partner’s capital, agricultural income, share transactions, commission and trading income, etc., in the form of accommodation entries. This cash has been routed through several layers of dummy/shell companies controlled by the entry provider groups or through hawala channels. The amounts introduced in the books of account have been invested in real estate and securities market,” said a statement issued by the Central Board of Direct Taxes (CBDT).
The apex tax body said the gaming company was operating in a “clandestine manner” and had concealed its operations and income from law enforcement agencies.
“The group operates from Mumbai and has a wide network of agents and area managers in different cities for collection of cash from a large customer base, who use the websites hosted on cloud servers by private operators. It was detected during the search that, after allotting IDs and passwords to the customers, points are credited into their accounts by agents/area managers after collecting cash from them. The cash is then sent to Mumbai through hawala operators,” said CBDT.
The tax authority has also seized handwritten notes, documents and digital evidence containing detailed account of daily cash transactions “to be introduced in the books of account” of the company.
The tax department, sources said, also tracked down an angadia who was used by the company to move cash from one source to another.
