Rs23,000 Crore Alleged Fraud at Shree Cement, Company Says Cooperating with I-T Officials

IANS 26 June 2023

Economy & Nation

Income-tax (I-T) officials have conducted searches at premises of Shree Cement group in various places across Rajasthan and have seized documents indicating tax fraud to the tune of at least Rs23,000 crore, sources said on Sunday.

I-T department officials said that a scrutiny of the documents found in the raid has revealed that almost Rs1,200 to Rs1,400 crore tax evasion was reportedly done every year.

The raids came after I-T department officials doubted the tax deduction claims of the group, they added.

On the other hand, it was also reported that the Centre and the state governments incurred losses via fake agreements made by the sarpanch, gram panchayat and the local bodies concerned and the I-T department officials have also seized the agreements related to the forgery.

According to the information from the I-T department, when the members of the group were questioned in this matter, they denied having any information in this regard.

Shree group's chairman HN Bangur and vice-chairman Prashant Bangur have moved out after the raids. Group's joint president Arvind Khicha was reportedly called for questioning several times during the raids but he too did not appear before the I-Tax officials. Officials are also unable to contact senior officials of the firm.

A team from the I-T department's Jaipur office had raided more than 24 locations of Shree Cement in Jaipur, Beawar, Udaipur, Ajmer, and Chittorgarh. More than 200 I-T officers and policemen were involved in this raid.

According to I-T officials, there were huge irregularities in the accounts of coal purchased for cement production and the payment made for this and the department detected this fraud with the help of new technology and software.

On this basis, the department found differences between I-T exemption claimed by Shree Cement and what was really due. It was on the basis that the action followed against the company.

I-T department officials also said that a few other companies also on their radar, and they may soon conduct a survey on real estate and mining companies and other big businessmen.

Meanwhile, Shree Cements officials on Sunday clarified that the I-T department was conducting a survey at its premises, and the company's management team is available and extending full cooperation to the officials.

They further said that any information required by the officials is being made available.

The company has, in filings with the BSE and the NSE, maintained that the entire team of the company is available, as per a copy shared with IANS.

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