Shell transactions under vigil: Serial Income Tax raids on three businessmen
HYDERABAD: Income Tax sleuths on Wednesday conducted simultaneous searches in Hyderabad and Vijayawada on three top businessmen cum-realtors, who were allegedly evading tax, particularly in real estate transactions and unearthed documents pertaining to unaccounted investments running into hundreds of crores of rupees. These are the first big raids after shell company transactions came under nationwide scanner.In the first case, I-T sleuths investigating tax evasion and alleged routing of money through shell companies of Old City-based businessman Shanawaz of Falaknuma, found imported luxury cars in his premises. Shanawaz owns two function palaces, including Kings Garden Function Hall at Engine Bowli, petrol pumps and a developed Kings Colony layout in Shastripuram. His political connections are also under scanner.
Searches were conducted on houses, offices and business establishments of Shanawaz, including at Shastripuram and Engine Bowli in Falaknuma. I-T sleuths are estimating that initially the value of Shanawaz and family properties and investments would be around `100 crore. Shanawaz recently floated King Radio Exim Private Ltd and its transactions are under the scanner. In second case, I-T sleuths raided the house and office of realtor, Syed Akhtar of SA Builders and Developers at Tolichowki and found Rs 56 crore of properties and investments. It was found Syed Akhtar’s companies have transactions with Heera Gold. Recently, sleuths conducted a survey of Heera Gold Group of Hyderabad and found `60 crore worth tax issues after which the firm offered to pay .
In the third case, IT sleuths conducted searches at Vijayawada on Yugandhar Real Estate company and found that a prominent realtor purchased and developed huge chunk of lands and evaded tax.
Tax profiles of Hyderabadbased-businessmen-cum realtors are suspicious and it’s suspected they have invested in real estate without capital and by raising bogus loans. In Shanawaz’s case, sleuths seized land papers, including property of crores purchased in Road No.12 in Banjara Hills apart from receipts pertaining to petrol pumps and function palaces.
Sources said of seven luxury cars found at the premises of King’s Palace, two are imported. Shanawaz said cars belong to his friends and registered in names and since they are constructing a new house, they are using his space for parking.
Regarding Kings Radio Exim Company, I-T department is checking balance-sheets. The department seized `25 lakh and gold ornaments from the residence of Shanawaz. They are assessing the value of assets and verifying allegations that Shanawaz’s companies may have routed money from city-based shell companies.
It was found he had unsecured loans from a gold firm. It is estimated he has Rs 30 crore loans. It laid hands on registration papers of properties, including of a recently bought one in Banjara Hills. Sources said SA Developers owned by Syed Akhtar of Tolichowki also resorted to a similar tactic. He had huge properties without much capital and showed unsecured loans of crores.
