Chennai: I-T raids on Refex uncover Rs 1,000 crore unaccounted revenue off the books
The department noted that many subscribers are employees and associates of the group's promoters, making the entire Rs 382.68 crore investment "unexplained."
Income Tax Department on Monday conducted raids (Photo/X@ThanthiTV)
CHENNAI: The Income Tax Department, Chennai, has uncovered unaccounted income exceeding Rs 1,000 crore and seized gold, silver, and cash valued at over Rs 70 crore during extensive ongoing raids that began on December 9 on the premises owned by Refex Group and its associates.
The raids targeted Refex Industries Limited, the group's flagship company involved in refrigerant gases, ash handling, power trading, and solar power generation, along with associated individuals in hawala, finance, and jewellery businesses.
According to department sources, preliminary investigations have revealed substantial evidence of financial malpractices, including fictitious purchases worth Rs 1,112 crore related to coal procurement and ash handling.
Refex Industries Ltd received Rs 382.68 crore as equity contributions from 53 individuals/entities. Of these, 15 have never filed tax returns, indicating a lack of financial means, and 37 did not declare this transaction in their income returns.
The department noted that many subscribers are employees and associates of the group's promoters, making the entire Rs 382.68 crore investment "unexplained."
Evidence points to an investment of $30 million in a Swiss pharmaceutical company, Astro Viz, the sources of which are under scrutiny. Another investment of Rs 115 crore in DN Energy Ltd was allegedly diverted immediately after being credited.
The promoter allegedly created companies in the name of his personal driver, and routed cash deposits of Rs 8.5 crore and transactions exceeding Rs 200 crore through it.
The promoter's extravagant lifestyle is under the scanner as well, with investments in a private jet (Rs 37 crore), high-end cars (Rs 10 crore), and luxury watches (Rs 4 crore), according to a department statement.
Separate action was taken against an associated leading financier, Rajesh Surana, who advanced loans of Rs 312 crore to Aradhya Infra, which were then loaned onward.
The department is examining this circular transaction.
Raids on hawala operators assisting the group have uncovered details of illegal fund transfers exceeding Rs 10 crore, it said.
"The search is ongoing, and further investigations are in progress," according to an Income Tax Department statement.
