MP: Income Tax recovers Rs 450 Cr ‘undisclosed Income’ in a raid on Congress MLA premises

MP : Over ₹ 450 crore in undisclosed income has been recovered from raids on business premises owned by the family of Madhya Pradesh Congress MLA Nilay Daga, the Income Tax Department said Monday evening. Unaccounted cash stores of Rs 8 crore, unexplained foreign currency amounting to Rs 44 lakh and information about nine bank lockers were found during the raid.

“The group introduced unaccounted income to the tune of ₹ 259 crore by way of introduction of share capital at huge premium from Kolkata-based shell companies…. introduced undisclosed income of ₹ 90 crore by way of sale of paper investments in shell companies to another set of shell companies of Kolkata,” the CBDT (Central Board of Direct Taxes) said in its statement.

During the raids incriminating evidence in the form laptops and hard drives were confiscated. The raids had been carried out since February 18 across 22 locations in the state’s Betul and Satna districts, as well as Mumbai and Kolkata.

In Betul, the home district of the powerful Daga family in Madhya Pradesh, the searches were carried out at around seven locations by the IT department team, which went in the garb of a wedding procession on the raided locations. The raided locations included the family’s residential premises, factories and also a school in Betul district.

Searches also started at the group’s oil unit in Satna district of MP, besides factories in Solapur and the corporate office and related premises in Mumbai. An associated search was also carried out in one premise related to the group in Kolkata.