Major Tax Raid Uncovers ₹4 Crore Jewellery, ₹1 Crore Cash, and Suspected Evasion of ₹100 Crore

In one of the largest Income Tax actions in eastern Uttar Pradesh, raids conducted over four consecutive days at premises linked to five prominent businessmen across Gorakhpur, Kushinagar, Deoria, and Maharajpur have resulted in the seizure of substantial assets and incriminating documents. The Income Tax Department has confirmed the recovery of jewellery worth nearly ₹4 crore, around ₹1 crore in cash, and key documents related to 18 immovable properties. Preliminary findings indicate suspected tax evasion exceeding ₹100 crore.

The operation, which began on Tuesday, was carried out under the supervision of senior Income Tax officials and involved more than 220 officers. Simultaneous search operations were conducted at multiple locations across the Gorakhpur division, with teams mobilised using over 30 vehicles. The four-day-long exercise concluded late on Friday night at around 10.30 pm, after which teams deployed in various locations withdrew.

Initial investigations suggest that the businessmen deliberately suppressed profits by using fake purchase and sales invoices, thereby artificially reducing their tax liabilities. Documents recovered during the searches indicate coordinated billing practices among multiple firms, with cash transactions kept outside official accounts. Income Tax officials believe there is a significant gap between the actual scale of business operations and the income declared in tax returns.

Investigators have also recovered several crucial documents linked to real estate and liquor businesses. Departmental sources claim to have found strong evidence of black money investments in real estate projects. Substantial amounts of cash were recovered from two locations in Gorakhpur and from a liquor factory in Deoria, a fact confirmed at the departmental level. Documents further suggest that land and building purchases were shown at undervalued prices, pointing to evasion of stamp duty. Officials believe that property transactions were structured to conceal the true value of investments and launder unaccounted income.

During the operation, the Income Tax Department also searched the premises of a chartered accountant (CA) linked to the businessmen. Several important documents relating to financial transactions were recovered, including records of recently acquired properties. According to officials, there are clear indications that large cash payments were made for these properties, which were not reflected in the books of accounts.

On Friday, Income Tax teams remained stationed at the Medical Road-based motorcycle showroom of an automobile dealer, the office of his associate at Baldev Plaza, and residential premises located in Civil Lines and Sports College Road. Searches were also conducted at a tanker operator’s factory in the GIDA industrial area and a solvent factory in Bargadwan. Officials have reported the recovery of multiple documents related to investments from the Sports College Road residence.

Income Tax officials stated that a detailed analysis of the seized documents and digital data is currently underway. Preliminary assessments suggest that the quantum of tax evasion could exceed ₹100 crore. The department has indicated that further questioning and search operations may continue. Following the completion of the investigation, tax assessments will be finalised and legal action will be initiated as per law.

Meanwhile, during the search at a liquor factory in Deoria, an employee reportedly fell ill, leading to brief commotion at the site. With assistance from other staff, Income Tax officials ensured that the employee was immediately taken to a hospital. After treatment, the employee’s condition was reported to be stable. Once the situation normalised, the search team collected relevant documents and exited the factory premises.

At present, the Income Tax Department has not issued any detailed official statement on the operation. However, officials indicate that the case is likely to expand further in the coming days as the investigation progresses.