The Income Tax Department said on Saturday that during the raids on Dainik Bhaskar Group, evidence of tax evasion on income of Rs 700 crore, violation of stock market rules and misappropriation of profit from listed companies has been found.
The department stated, “During the raids, it has been found that they were running many companies in the name of their employees. Which were being used for booking of bogus expenses and for diverting money from one account to another. Several employees who were made shareholders and directors confessed during the raids that they had no knowledge of the companies being run in their names; they had given their Aadhar card details and digital signature to the company in confidence.”
“Some relatives were found to have signed the papers voluntarily and knowingly, but had no knowledge or control of the business activities of the companies in which they were made directors or shareholders.”
"The quantum of income escapement using this modus operandi, detected so far, amounts to ₹ 700 crore spread over a period of six years. However, the quantum may be more as the group has used multiple layers and investigations are being carried out to unravel the entire money trail," the department added.
The tax department said it had also found a violation of rules of the stock market regulator Securities and Exchange Board of India (SEBI) for listed companies. "Application of Benami Transaction Prohibition Act will also be examined," the department said further.
Adding to this, they continued, “Cyclical trading and transfer of funds among group companies engaged in unrelated businesses to the tune of ₹ 2,200 crore has been found. The enquiries have confirmed that these have been fictitious transactions without any actual movement or delivery of goods. The tax effect and violation of other laws is being examined."
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"The listed media company does barter deals for advertisement revenues, whereby immovable properties are received in lieu of actual payments. Evidences have been found indicating cash receipts in respect of subsequent sale of such properties. This is under further examination," the department added.
However, Dainik Bhaskar have termed all these allegations of Rs 700 crore tax evasion as 'baseless'.