Rs 1,000 crore unaccounted cash sales in Polycab found by IT Department

After a raid at Polycab Group, the Income Tax department has found "unaccounted cash sales" of Rs 1,000 crore (approximately), according to an official statement by the Ministry of Finance.

The I-T sleuths initiated search and seizure operations last year in December. At more than 50 premises located in Mumbai, Pune, Aurangabad, Nasik, Daman, Halol and Delhi the search action was conducted.

As per the statement by the ministry, the search operation brings forth an unaccounted cash sales of around Rs 1,000 crore by Polycab India.     

A large number of "incriminating" evidence in the form of documents and digital data were seized during the raids, said CBDT, the administrative body for the Income Tax department.

These reveal the "modus operandi of tax evasion" adopted by the group in connivance with some of authorized distributors, it said.

Apart from this, the income tax department also seized unaccounted cash payments of more than Rs 400 crore made by a distributor, on behalf of this company. They also identified non-genuine expenses in the nature of sub-contracting expenses, purchases and transport expenses, etc. aggregating to about Rs 100 crore.

The operation also revealed unexplained transactions undertaken by the distributor for issuing bills without a genuine supply of goods whereas such goods have been sold in open markets in cash.

An amount of unaccounted Rs 4 crore has been seized during the search operation and more than 25 bank lockers have been put on restraint, according to the Ministry of Finance.