I-T finds bogus expenditure of ₹1,000 cr during raids in K'taka

The Income Tax Department on Tuesday said that they recently carried out a search and seizure operation at 16 different locations in a case involving some Cooperative Banks in Karnataka, which led to the recovery of valuable and incriminating documents, and detection of Rs 1,000 crore bogus expenditure.

An I-T official said that these Cooperative Banks have been found to be engaged in routing of funds of various business entities of their customers, in a manner so as to abet them to evade their tax liabilities.

The search action has resulted in seizure of unaccounted cash of over Rs 3.3 crore and unaccounted gold jewellery worth over Rs 2 crore.

A large amount of incriminating evidence in the form of hard copy documents and soft copy data have been found and seized during the search action.

The seized evidence revealed that these Cooperative Banks were involved in rampantly discounting bearer cheques issued by various business entities in the name of various fictitious non-existing entities.