The search action, which began early Thursday morning and concluded Tuesday evening, targeted the Bhole Baba, Dauji, Poddar, Malani and Bikaner groups, following inputs related to tax evasion and large-scale adulteration.
Search spans 35 premises in multiple states
Officials said the Agra investigation wing covered more than 35 premises during the operation, including establishments located in Delhi, Agra, Dholpur, Kanpur Dehat, Aligarh, Sirsaganj, Dausa, Bikaner and Jodhpur. Over 200 income tax officials and staff were deployed as part of the coordinated exercise.
Documents, digital records and loose papers seized during the raids are being examined, and officials said the probe will continue in the coming weeks.
Cash, jewellery and lockers traced
During the searches, the department recovered ₹5 crore in cash, which was not reflected in the books of accounts. In addition, jewellery worth over ₹18 crore was found, of which quantities exceeding permissible limits were seized.
Investigators also traced 16 bank lockers, on which prohibitory orders have been issued under the Income Tax Act. These lockers will be opened shortly, with officials indicating that further recovery of documents, jewellery and cash is likely.
Bogus purchases and hawala-linked slips found
Officials said several instances were identified where purchases and sales were shown on paper without any actual movement of stock, raising suspicion of bogus billing aimed at influencing input tax credit claims.
Among the documents recovered was a slip suspected to be linked to hawala transactions. Evidence of foreign investment, including in Uganda, which had not been disclosed to tax authorities, was also found. Several expenses were detected that were kept outside formal accounting records.
Large-scale land investments under scanner
The investigation has revealed significant investment in land, with documents indicating a large number of property registrations between 2019 and 2025. Officials are examining how much cash component was used in these transactions. Other high-value investments across multiple heads have also surfaced.
Based on the final assessment of undisclosed income, the department is expected to initiate tax determination and penalty proceedings.
Adulteration adds public health dimension
The search also exposed ghee adulteration at manufacturing units in Dausa and Sirsaganj. Samples collected from the Dausa plant tested adulterated at a Delhi-based FSSAI laboratory, while similar violations were found during production at the Sirsaganj unit.
Information related to adulteration has been shared with the Food Safety Department for further regulatory action. Officials said adulteration significantly reduced production costs, but expenses were shown in books as if pure ghee was being manufactured—allowing higher profits while evading taxes.
Inter-agency coordination planned
Following the action, the Income Tax Investigation Wing is preparing to expand the probe through inter-agency coordination. The Central Board of Direct Taxes (CBDT) is expected to facilitate intelligence-sharing with other enforcement and regulatory agencies.
Officials said the crackdown is being viewed as an enforcement-driven action against entities involved in tax evasion and practices posing risks to public health.
Further action will be taken after detailed scrutiny of seized material, officials added.
Source: The 420
Share this content: