Income tax dept raids Ahmedabad realtors

The directorate of income tax (investigation) launched a massive raid on city based builders and their partners on Thursday. Well-known realtor Galaxy Group, Madhav Group and a land broker identified as Sanjay Thakkar were raided.

According to I-T officials, currently 30 to 35 projects are being developed under the Galaxy Group owned by Uday Bhatt. All these projects were raided. Further, the group has invested hugely in land deals for its upcoming hotels and clubs among others.

I-T sleuths have covered 45 premises of the group in Ahmedabad while two premises are being searched in Vadodara and one in Nagpur. They said all the residential and commercial projects of these groups are being investigated.

Galaxy Group has most of its projects situated in the eastern part of the city connecting Gandhinagar including Naroda, and SP Ring Road among others. They said company office located at Galaxy Cinema, Galaxy Complex in Naroda and its residence Nandanbaug Society in Shela village in Naroda have also been covered in the raid.

Sources said, Madhav Group's owner Motiram Prajapati is said to be a partner in some of the Galaxy Group's projects. Sanjay Thakkar, a land broker has also been covered in the raid. Sources said all the three parties covered in the raids have hugely invested in land located in the suburban eastern parts of the city.

Officials said a large number of incriminating documents have been seized during the raids which are now being investigated.

ED attaches assets of Vishal Exports
The Enforcement Directorate (ED) has began attaching properties of Vishal Exports Overseas Limited, a city-based export house, in connection with multiple fraud cases lodged against the company.

The company is allegedly involved in multiple frauds and several investigative agencies are looking into the same. ED has attached the company director Pradip S Mehta's bungalow located at Vasuma Hill Society in Vastrapur under the Prevention of Money Laundering Act (PMLA).

The bungalow is estimated to be worth Rs2.50 crore. Two windmills worth Rs3 crore in Jaisalmer have also been attached.

The attachment of properties comes in the wake of alleged cheatings and forgeries committed by the company and its directors.

The Central Bureau of Investigation (CBI), Directorate of Revenue Intelligence (DRI) and Central Customs are some of the agencies that have booked the company for fraud committed over the last two decades. The investigations are still on.

The company, engaged in export of agricultural commodities, reportedly availed benefits under various government schemes and funds on the basis of forged documents. During a CBI raid last year, it was found that the company availed funds such as Packing Credit Facility, Foreign Bill Discounting facility among others to the tune of Rs500 crore from a consortium of 23 banks.

Sources said the company cheated banks like Punjab National Bank (Rs200 crore), Andhra Bank (Rs21 crore), Vijaya Bank (Rs20 crore), NAFED (Rs77 crore) among others. The CBI Mumbai investigated complaints lodged by Vijaya and Andhra Bank, while CBI Delhi investigated the case lodged by NAFED.

The company officials allegedly used loans sanctioned by various banks for personal purpose and failed to repay them.

In fact, sources said that the company's export activities are also under scanner as during the investigation it was found that the company availed undue benefits of various schemes under the guise of exports.

Sources said that more properties are likely to be attached as the company owner is facing at least half-a-dozen offences in which nearly Rs400 crore was swindled. The company is facing such charges for the past 20 years.

The company is run by Mehta family. Subhash Mehta is the chairman and managing director, while his sons Pradip and Deepak are directors. They had been arrested by CBI officials last year.