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Tax sleuths raid real estate developers in Bangalore
June, 27th 2007
Tax sleuths on Tuesday unearthed cash estimated to be in billions of rupees, gold and jewellery and incriminating documents in raids on the offices and residences of some Bangalore-based real estate developers and property dealers, a top official said.

The searches were carried out simultaneously in four to five premises of the developers and dealers in the presence of police and senior officials of the income tax department.

"The raids are still on. Details on recoveries are awaited, as the teams are yet to return from the field. The searches are being conducted in connection with tax evasion and amassing of wealth disproportionate to their sources of income," the income tax official told IANS on phone.
Police officials accompanying the tax sleuths said raids in the premises of S. Manjunath, a leading builder-cum-property dealer, yielded about Rs.100 million in cash, seven kg of gold, documents and stamp papers related to buying and selling of lands, residential plots and houses.

Official-cum-residential premises of two other developers - Reddy Veeranna and Kupendra Reddy - were also searched leading to the seizure of unaccounted cash, forged documents and passbooks of bank accounts.

"The seizures have revealed the extent of evasion and non-disclosure of the deals taking place in and around the city, where demand for commercial and residential properties has been surging of late," the official said on condition of anonymity.

Meanwhile, Karanataka Chief Minister H.D. Kumaraswamy denied reports that realtor Manjunath was associated with his family and handled property deals on his behalf.

"So many people have began claiming to be close to me and my family since I became the chief minister last year. It is for the authorities to verify such claims," Kumaraswamy told reporters at the secretariat when the raids were brought to his notice.

Sources in the ruling Janata Dal-Secular said Manjunath was only a supporter of the party and participated in its campaign during the last elections.
 
 
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