Income tax raids on Era Constructions unearth Rs 53 crore
November, 03rd 2007
The income-tax department raids conducted recently on Era Constructions, a medium-size, listed company, have unearthed an undisclosed income of Rs 53 crore.
Based on the incriminating documents seized and investigation conducted subsequently, the group admitted to undisclosed income of Rs 53 crore, said a press statement of the income-tax department without disclosing the name of the company.
Cash amounting to Rs 1.75 crore was also seized in the course of search.
When contacted, the income-tax spokesperson declined to comment on the name of the company.
The sources, however, said that raids were conducted on the premises of Era Constructions, at 24 places spread over Delhi, Ghaziabad, Gurgaon, Meerut, Saharanpur, Pantnagar and Jaipur on October 24.
Despite repeated attempts, Era officials could not be contacted.
Era, which was incorporated in 1990, is engaged in construction activities for airports, power projects, infrastructure and residential buildings.
The company got listed in 2005. In the year ended March, Era posted a net profit of Rs 79.12 crore on revenues of Rs 784.98 crore.
The sources said the company has been found engaged in procuring bogus bills from its suppliers and inflating its expenses and reporting reduced profits leading to tax evasion.
The main suppliers of bogus bills were operating from Ghaziabad and through their agents in Delhi. Some specific information in this regard was also received from the Directorate-General of Central Excise Intelligence, Delhi, said sources.