The Income Tax Department has detected over Rs 400 crore of tax evasion by the Chennai-based MGM Group, a diversified conglomerate with business interests in alcohol, logistics, amusement parks and consumer products, sources told FE.
The tax authorities carried out search and seizure operations on the industrial group on June 15, 2022 in more than 40 premises located in Chennai, Villupuram, Pondicherry, Coimbatore and Hyderabad, he said in a press release without naming the company.
During the searches, various incriminating documentary and digital evidence was seized.
“Analysis of this evidence indicates that the group of assessees engaged in large-scale tax evasion exceeding 400 crores by debiting non-genuine purchase invoices in the books of accounts of various businesses,” said the tax department.
These inauthentic purchase invoices were obtained either from its regular hardware vendors or from hosting entry providers, he said. “During the gleaning, evidence seized also revealed that payments made to material suppliers by check were reimbursed in cash for making unaccounted investments and also for other purposes.”
The group also controls the back-office operations of its international hotel chain from India.
So far, the search action has led to the seizure of undisclosed cash worth Rs 3 crore and unaccounted for gold jewelery worth Rs 2.5 crore, the tax authorities said. Further investigations are ongoing, he added.