IT Dept raids two major realty players of Hyd; finds Rs 700 cr tax evasion

New Delhi: Two major realty players of Hyderabad have been raided by the Income Tax sleuths and tax evasion to the tune of Rs 700 crore has been found out.

The two companies are based in and around Yadagirigutta which is very close to Hyderabad, said the IT Dept in a statement, without giving the exact names of the realty firms. Cash to the tune of Rs 11.9 crore and jewellery worth around Rs 1.9 crore has been seized during the raids.

The firms are in the business of plot sales and also construction of flats. 

"Many incriminating documents, hand written books, agreements, among others, have been found in the raids,” said the IT Dept. 

"Many pieces data have been recovered from special software applications as well as from electronic gadgets," said the IT Dept. 

The real estate companies were found to be taking cash over-and-above the registered value of the property. This unaccounted cash was utilized for on-money payment for buying land and for business expenditure.

The companies have been indulging in these tax evasion activities for the past 6 years.