The Income Tax department's investigation wing has recently conducted a series of raids on prominent real estate players in Surat. From these operations, the department seized INR 8 lakh in cash alongside jewelry valued at nearly INR 45 lakhs.
Significant Operations in Surat
Last month, the Income Tax department targeted six prominent real estate developers in Surat, resulting in a significant recovery of assets. The raids were part of a broader investigation where over INR 92 crore was recovered by the department, which involved not only developers but also two leading advocates from the city.
According to sources within the Income Tax department, the operation commenced on December 26, 2012. Raids were carried out simultaneously in several locations, with teams deployed in groups to minimize the chance of any developers escaping scrutiny. Notable locations included Adajan Patia, Pal, V Arachha, City Light, Ghod Dod Road, and Vesu, which are known to be hubs for these realty builders and their legal representatives.
During the raids, approximately 19 bank lockers belonging to the developers were secured. A total of INR 1.3 crore was seized out of INR 1.5 crore that was discovered in cash during these checks.
Future Expectations
A senior official has indicated that the Income Tax department anticipates recovering nearly INR 100 crore from the developers as the investigation continues. The evaluation of 12 additional bank lockers belonging to the developers is still in progress. Only after these assessments are complete will the department provide further details regarding the ongoing situation.
This recent raid marks the third largest operation executed within the year 2012. In earlier investigations, the Income Tax department managed to recover INR 127 crore from various real estate builders in the city, making it the largest recovery to date, while the second-largest raid resulted in INR 111 crore being retrieved from a logistics firm.