Nagpur Supari Traders Face Weekend Tax Raid, ₹2.5 Crore Cash Seized
In an unusual move, Income Tax officials carried out a search and seizure operation on a Saturday in Nagpur. Tax sleuths targeted a group of areca nut traders during an early morning raid. This action broke from the typical practice of conducting such operations only on working days.
Cash and Gold Under Scrutiny
The raid resulted in the seizure of ₹2.5 crore in cash. Officials also discovered nearly one kilogram of gold jewelry. Tax authorities are currently examining the sources of this gold. If the traders fail to provide satisfactory explanations, the gold may be confiscated as well.
Tax teams began by thoroughly checking the inventory at the traders' premises. They specifically looked for unreported stock that might have been purchased with unaccounted funds.
Business Groups and Market Sensation
The operation covered two groups of supari firms and a transporter connected to them. The presence of armed policemen with the raiding party created quite a sensation in the local market, particularly in the Maskasath area.
This traders' group has faced previous action from the Department of Revenue Intelligence, the government's anti-smuggling agency. Now, other agencies might become involved in the investigation.
Potential Involvement of Multiple Agencies
Sources indicate that if investigators find any banned items, especially gutkha, during their search, they may call in additional agencies. These could include the Enforcement Directorate and even the Food and Drug Administration.
Departure from Standard Practice
Income Tax departments normally conduct search and seizure operations, commonly called income tax raids, only on working days. They typically stop operations after regular working hours, seal any material under scrutiny, and resume their work the next day.
While no rules prohibit searches on off days, Saturday raids remain exceptional. Chartered accountants specializing in tax matters confirmed this represents a significant departure from standard practice. Officials conducted this raid due to the urgency of the matter.
Scope of the Operation
The investigation wing of the Income Tax Department, which has authority to seize cash and valuables found on premises, carried out these raids. So far, officials have searched twenty-four different locations.
Business Operations Under Investigation
The traders group was reportedly engaged in exporting nuts and maintained business ties with a Mumbai-based company. They operated through multiple companies but typically used a single transporter for their operations.
Sources suggest these traders sometimes transported other commodities under the name of supari to avoid paying taxes. Such practices have previously attracted attention from agencies like the DRI, leading to enforcement actions against the group.
