Income Tax Dept conducts searches in multiple states busts racket of entry operation

The IT department on Tuesday carried out searches in 42 premises of people running a racket of entry operation and generation of huge cash through fake billing across Delhi- NCR, Haryana, Punjab, Uttarakhand and Goa.

The search has led to seizure of evidences exposing the entire network of the entry operators, intermediaries, cash handlers, beneficiaries and firms involved. So far, documents evidencing accommodation entries of more than Rs. 500 crore have already been found and seized, according to an official release.

Several shell entities/firms were used by the searched entry operators for layering of unaccounted money and cash withdrawals against fake bills issued and unsecured loans given.

The personal staff/employees/associates had been made dummy directors or partners of these shell entities and all bank accounts were managed and controlled by these entry operators, the release claimed.

The searched persons were also found to be controller and beneficial owners of several bank accounts and lockers, opened in names of their family members and trusted employees and shell entities, which they were managing in collusion with the bank officials, through the digital media, it said.

During the search, Rs 2.37 crore cash and jewellery worth Rs 2.89 crore has been found along with 17 bank lockers, which are yet to be operated, officials said, adding further investigation were in progress.