The Income Tax Department on Thursday conducted searches on the premises of an independent MLA, Balraj Kundu, from Meham in Haryana and several other places in connection with suspected tax evasion, according to an agency official.
Mr. Kundu has extended support to the farmers’ protest against the three farm laws and had also protested against the related agri “reform” ordinances brought by the Centre last year. The searches were carried out at his Rohtak residence and multiple other locations in Gurugram.
Suspected tax evasion
The Income Tax Department released a statement in the late evening stating that the searches were in the case involving a Gurugram-based real estate company, its promoters, directors and other group companies, covering 20 premises.
The company is in the business of government contracts specialising in the construction of roads, highways, bridges and runways. It also is into real estate development and residential complexes.
“The search has yielded evidence of bogus long-term capital gain of ₹25 crore in the names of the main promoter and family members in 2012-13 and 2013-14, on which no tax has been paid. The search has also established that bogus expenses in the form of sub-contracts to the tune of ₹100 crore have been claimed by the group, to reduce its taxable income,” said the department.
According to the agency, the parties in whose names such expenses were booked were unaware of the transactions. “This amount of ₹100 crore has been routed back to the group companies as share capital and share premium,” it said, adding that documents related to “benami” assets were seized during the searches. Foreign currency worth $14,000 and ₹1 crore in cash were also found.
Stating that the searches were under way, the agency said it had also detected 15 lockers which had been placed under restraint.
Mr. Kundu had withdrawn his support to the Manohar Lal government about a year ago alleging inaction against corruption. He had alleged corruption in the operations of sugar mills in the State. He was earlier the Chairman of the Zila Parishad in Rohtak.