The CBDT said in a statement that the raids were carried out on the basis of confidential information about fake damages, fake purchases and fake subcontract expenses. The board did not reveal the identity of the company in its statement, but officials confirmed that the matter was of Bharat Vikas Group (BVG). However, the statement said that the group is engaged in several business activities.
It provides Housekeeping, Landscaping and Gardening, civil and Electric maintenance, Fabrication services, turnkey solutions and logistic support and services required by government agencies and municipal corporations.
The statement said that the search and seizure action led to the discovery of fake evidence about a claim of loss of Rs 91 crore under a scheme of de-merger. Also, fake expenditure on baseless purchase of 77 crores was also revealed. Also, evidence of cash expenditure of 20 crores has also been found. During the raid, Rs 60 lakh cash was also found. There was no account of this either. Also many lockers were found. On the basis of the evidence collected so far, undisclosed income of Rs 180 crores has been revealed.
The Income Tax authorities on Wednesday raided the BVG group’s more than two dozen locations in Pune, Mumbai, Nagpur, Delhi, Bangalore and Noida. The chairman and MD of the group, Hanumantha Gaikwad, had said on Wednesday that raids by income tax officials on the company’s premises were a regular action. He started an NGO in the 1990s and in 1997 he launched a housekeeping company with a client. It has since grown to 850 clients and more than 75000 employees in 70 cities across 22 states.