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New Delhi : The Income -tax (I-T) Department conducted search and seizure operations on June 11, 2019, on a prominent business group based in Srinagar covering 8 premises in Srinagar and 1 each at Bangalore and Delhi. The assessee group is engaged in the business of transportation, manufacturing of silk yarn, hospitality, retail trading of Kashmir Arts & Crafts etc.

None of the members of the group is regular in filing their Income- Tax Returns. As a one time settlement, the group has got their loans of Rs 170 crore with J&K Bank restructured for a sum of Rs 77 crore of which payment of only Rs 50.34 crore to the J&K Bank has been made so far and balance of Rs 27.66 crore is yet to be paid.

During the search, evidence has been detected indicating that the one time settlement of the loan from J&K Bank has been done through the active connivance of a senior J&K Bank officer who was receiving several out of turn promotions. Furthermore, evidence has also been unearthed indicating that the repayment of Rs 50.34 crore pertaining to the said loan has been greenfielded by the J&K Bank by granting loan of similar amount to an associate who has confessed to his role in layering the entire transaction.

During the search, incriminating evidence has also been found relating to: sale of undisclosed property amounting to Rs 22 crores, agreement to sell Transport business for Rs 9.10 crore, undisclosed profit of Rs 15-20 crore on account of sale of Cold Storage plant at Lassipora ( The cost of this project was found to have been inflated to Rs 47 crore instead of the actual cost of Rs 17 crore for claiming more subsidy from the government by raising inflated and bogus bills. The loan for this project was taken from J&K Bank), undisclosed properties at Sonmarg (Rs 2.68 crore), Pahalgam (Rs 3.55 crore) and Bangalore (Rs 1 crore), one shop in partnership in Delhi purchased for Rs.1.02 crore, according to a PIB release. During the search, digital evidence found have been seized analysis of which is in progress.

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