₹800 Crore Income Tax Evasion Uncovered: Mine Registered in Servant’s Name

The Income Tax Department’s extensive four-day raid on mining and real estate establishments in Bandā and Mahoba has unveiled alleged income tax evasion worth approximately ₹800 crore. Investigations revealed that a large mine was being operated in the name of a domestic servant, a practice described by officials as highly irregular and serious.

Over 200 teams of the Income Tax Department conducted coordinated raids on Wednesday at the premises of mining businessmen and associates, including Sirajdhwaj Singh, brother of a former legislator, Dilip Singh, and an unidentified individual named Gupta. During the operation, cash and assets worth ₹21 crore were recovered, including ₹7 crore in cash and ₹14 crore in jewellery. In addition, 20 bank lockers were seized, which are expected to contain further cash, jewellery, and documents related to other assets.

Preliminary findings indicate that around ₹660 crore in bogus purchases were routed through Mumbai-based companies to manipulate tax records. Additionally, nearly ₹100 crore was allegedly shown as fake loans, which were then invested into real estate projects, bringing the total evaded amount to roughly ₹800 crore. Officials noted that the actual operational status of the mines and real estate projects is still under review. Early investigations suggest that traders registered accounts, mines, and real estate projects under servants’ and lesser-known individuals’ names to conceal financial transactions and evade scrutiny.

The Income Tax Department has recorded statements from the businessmen and their staff to understand the methods used to divert and launder funds through government records and financial channels. Sources said the network was highly organised, involving multiple companies and individual agents who facilitated the transfer and investment of large sums. A senior Income Tax official commented, “This scale of tax evasion is rare and involved unusual methods such as operating a mine in the name of a servant. It indicates that the traders had a premeditated strategy to circumvent taxation rules.”

Forensic examination of the seized bank lockers, cash, and jewellery will be carried out to determine the full extent of the illegal assets and to identify any other individuals involved in facilitating the evasion. Authorities have confirmed that comprehensive legal action will be taken against all accused. Preliminary raids have already indicated that several properties and transaction records were hidden using fictitious companies and documents. Further investigations are expected to reveal the role of additional individuals and entities in this large-scale tax evasion scheme.

Sources familiar with the case said that the Bandā and Mahoba mining and real estate sectors still contain numerous transactions and investments that require closer scrutiny. Officials emphasised that a thorough and impartial probe would be conducted and assured that strict action would be taken against all culprits once the investigation is completed. The raids have underscored the Income Tax Department’s focus on curbing sophisticated tax evasion schemes and preventing misuse of corporate and personal entities to divert large financial sums illegally.