The department carried out the search operations on three major contractors based out of Bengaluru and engaged in the execution of irrigation and highway projects. The searches which commenced on October 7 have been carried out at 47 premises across 4 states.
During the searches, unaccounted cash amounting to Rs. 4.69 crore, unaccounted jewellery and bullion valued at Rs 8.67 crore and silver articles valued at Rs 29.83 lakh were seized. Incriminating documents, digital evidence etc. was also seized, the release said.
It was found that these three groups were involved in concealing their income by resorting to bogus purchases, inflation of labour expenses, bogus sub-contract expenses etc.
The investigation revealed that one of the groups booked bogus sub-contract expenses in the name of about 40 individuals without means and unconnected to the construction business. Upon enquiry, these individuals admitted to the manipulation.
One of the groups admitted to having indulged in inflation of labour expenses amounting to Rs 382 crore. Another group was found to have taken accommodation entries from non-existent paper companies to the extent of Rs 105 crore, which has been admitted by this group.