The Income Tax Department launched a major search operation this week, targeting multiple companies in the food and beverages sector in Mumbai on allegations of tax evasion. Official sources confirmed on Thursday that the raids covered 20 to 24 premises in and around the financial capital.
Widespread Searches on F&B Outlets
According to sources, the action began on Wednesday after the tax department received specific and "actionable" intelligence. The companies under the scanner are suspected of engaging in undisclosed "out of the books" or cash transactions, a practice that can lead to significant tax evasion. The searches were extensive, focusing on the business offices of these entities.
Among the premises searched were offices linked to a restaurant that is co-owned by Bollywood actor Shilpa Shetty. Officials clarified that the actor's private residence in Mumbai was not part of the raid. They also emphasized that this income tax investigation is a separate legal matter and is not connected to other police cases involving Shetty and her husband, Raj Kundra.
Distinct from Other Legal Cases
The tax authorities made it clear that their probe is independent of two other ongoing cases. One is a Maharashtra Police FIR filed against Shetty and Kundra on charges of fraud. The other is a case registered by Bengaluru police against a restaurant, also reportedly co-owned by Shetty, for allegedly operating beyond permissible hours.
In the Mumbai fraud case, the Economic Offences Wing (EOW) recently added a cheating charge (IPC section 420) against the couple, in addition to the existing charge of criminal breach of trust (IPC section 406). This development occurred on Wednesday, coinciding with the start of the tax raids.
Celebrity Couple Denies Allegations
In response to the fraud allegations, Shilpa Shetty and Raj Kundra issued a strong denial on social media. They stated they have "fully cooperated" with the investigation and expressed confidence that justice will prevail. The couple asserted their faith in the country's law enforcement and judicial system.
In their statement, they labeled the allegations as "baseless and motivated," claiming the issues are being given an unjust criminal spin. They also revealed that a petition to quash the case is pending before the High Court and urged media restraint as the matter is sub-judice.
The simultaneous developments highlight the multiple legal fronts the celebrity entrepreneur couple is currently facing, while the I-T department's large-scale action underscores a crackdown on alleged financial irregularities in Mumbai's lucrative F&B industry.
