Dynamite News DN Exclusive: Income tax raids continue for 3rd day on Gallantt Group; hawala connection busted, many bureaucrats' black money invested
Tax evasion of more than Rs 500 crore has been detected by the officials of the Income Tax Department in the raids going on for three days on the Gallantt Group involved in real estate and steel business in several states of the country. It is estimated that this figure of tax evasion may increase further. So far, documents and electronic devices of more than 250 properties have been seized. Know latest update on Dynamite News:
New Delhi/Ahmedabad/ Lucknow : Countrywide raids by the Income Tax Department on Gorakhpur's Gallantt Ispat Limited and Gallantt Group of Industries continued for 3rd day on Friday. In UP alone, a team of more than 200 officers is conducting raids.
As per Dynamite News correspondent, it was generally perceived that the Gallantt Group deals mainly in the steel sector but the raid revealed that its major business is real estate.
500 crore tax evasion exposed
Raids are going on at more than 60 locations of Gallantt across the country wherein tax evasion of Rs 500 crore has been detected. Cash and jewellery worth Rs 16 crore have been recovered including over Rs 6 crore in cash and jewellery worth Rs 10 crore. Besides, papers of more than 250 properties, including some benami ones, have been seized. As the raid is going on, the figures of tax evasion and secrets of black money are unfolding further.
Currently the raids are going on at Gallantt locations in Uttar Pradesh, West Bengal, Gujarat, Delhi and Bihar. In Gorakhpur, raids are going on at the company's office at Bank Road, factory at GIDA and residence of owner at Bargadwa area.
Hawala connection busted
Income Tax officials have also found evidence of the involvement of some senior bureaucrats of UP in the benami properties of the Gallantt Group's real estate business. It is reported that the details of some code numbers on WhatsApp chat have been found which show the direct connection of some senior bureaucrats with hawala transactions.
IT raids continue for 3rd day on real estate and steel company #Gallantt Group in many states; 500 Cr tax evasion detected, hawala connections busted; black money of several UP bureaucrats invested; documents & electronic devices of 250 properties seized@IncomeTaxIndia #ITraids pic.twitter.com/lrAOnifzCb
— Dynamite News (@DynamiteNews_) April 28, 2023
Many bureaucrats under IT scanner
The IT department is now bracing to tighten the noose on the bureaucrats whose money transactions have been found in WhastsApp chat and call details. Many of these bureaucrats are secretly playing their cards to save the Gallantt Group.
ED may start enquiry
Sources told Dynamite News that after the exposure of black money investment on such a large scale, the Enforcement Directorate may also tighten its grip on the owner of Gallantt Group Chandra Prakash Agarwal and his patron bureaucrats.
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How did the Gallantt empire grow so fast?
Dynamite News sources reveal, many people associated with the Gallantt Group used to look for such pieces of lands which were disputed and by putting pressure, they were bought at lower prices. Then through the nexus of builders and officers, the lands were converted into profitable deals for the company. Sources say that the company made huge benami wealth by investing in real estate and evading tax.
Gallantt Group response awaited
Dynamite News tried several times to know the version of the Gallant group owners on undergoing IT raids but in vain.
Official statement by IT dept yet to come
The IT department's official statement about these raids is still awaited, it is expected that the department can issue an official version after these raids are completed.