NAGPUR : In a major action at the start of 2019, income tax department raided five builders in Amravati city. This covers all major realtors of the town, which is second largest in Vidarbha after Nagpur. The taxmen have acted on the basis of information that the realtors were taking substantial sum in cash from buyers.
The businessmen who have been covered in the search action are — Praveen Maloo, Subash Talda, Ashish Soni, Gopal Panpaliya and Sanjay Batra. Sources say the five controlled major part of the real estate business in Amravati apart from having undertaken joint projects. For example, Palak Creation of Batra had a joint venture with Govinda Group of Talda. All the five have had joint projects at some time or other. A couple of brokers too have been covered in the action.
The taxmen had been keeping a close watch on their activities and it was found that a substantial amount of consideration charged from the buyers was taken in cash. The taxmen have raided 20 premises belonging to these builders. The action was taken on the basis of intelligence gathered by the department on its own.
During last calender year, income tax department had sent cases related to five different assets to adjudicating authority for declaration of benami properties. The action follows after the Benami Trannsaction Act of 1988 was amended two years ago making the law more powerful. It has been learnt that out of the five properties, one is a residential flat and rest includes cash seized by police during interceptions. The process calls for giving notice to the property holder and once there is enough ground that the person does not have means to posses the asset, a case is sent to the adjudicating authority.
A decision is expected in relation to the flat soon. In rest of the cases, hearing is yet to start.
The flat is a mid-priced property, but the owner did not have resources to shell out even that much of amount for the asset. Once a property is declared benami, the income tax department can go ahead with its auction.
Over three months ago, tax sleuths had also raided Mulay Group in Aurangabad which is engaged in seed production. The investigation wing has reported that the company was booking agriculture income on which there is no tax, even as there was no land in its name. The only land it had was leasehold, taken from farmers for seed production. The seeds are purchased by the company from farmers. However, on the basis of the same land the company posted farm income in its books, said a source.
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