In a major crackdown, the Directorate-General of Central Excise Intelligence (DGCEI) has arrested the Rimjhim Ispat Group managing director and alleges to have seized records from his “secret office” revealing black money of Rs. 2,300 crore.
According to the agency, the annual turnover of the company as disclosed to the tax authorities was around Rs. 2,000 crore. Acting on a tip-off, the Headquarters unit of the DGCEI found out that the accused Managing Director, Yogesh Agarwal, maintained another “secret office” at Harsh Nagar of Uttar Pradesh’s Kanpur.
Subsequently, the DGCEI conducted searches at the office and seized the computer hard disks. An analysis of the data maintained in the computers and its comparison with the disclosures made to the tax authorities allegedly revealed an unaccounted income of about Rs. 2,300 crore in the past five years.
“The DGCEI has detected and seized records of black money to the tune of Rs. 2,300 crore from the office being maintained by the Rimjhim Ispat Group managing director. This was being done to avoid declaring actual purchase, manufacture and sale of iron and steel products to various Central and State tax collection agencies to escape the tax liabilities,” according to an agency official, who said the amount could go up as investigations were still under way.
The Rimjhim Ispat Group comprises a number of companies and is a leading manufacturer of Thermo Mechanically Treated bars, iron and steel flats, billets, wires, HR coils and other products. “The Group managing director was interrogated on Wednesday and put under arrest under Section 13 of the Central Excise Act for further investigation,” said an agency official.
Based on the findings, in due course, the agency will also intimate other departments concerned for further action.
This financial year, the DGCEI has recovered over Rs.1,000 crore from tax evaders. Recently, the agency detected eight “illegal” packing machines of pan masala and gutkha in the Dabri village of Delhi and arrested two masterminds. The accused had tweaked the machines in such a way as to avoid disclosing to the government agencies and inspection teams the real quantity of production and therefore, sale and consequent gain.
