Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Feb 13: The income tax (IT) department, which had recently targeted medical and cooperation fields, turned its eyes at fisheries industry recently, it is learnt. It is said that the department has found undeclared property worth Rs 195 crore with three of the leading players in the field.

The officials conducted raids on fisheries industrialists based in the city and Udupi three days back. In addition to finding Benami properties, the officials also seized important documents about evasion of taxes and Rs 86 lac in cash. The officials also found that these industrialists are involved in undertaking Hawala transactions with a Chinese firm.

It is said that the IT officials, who kept close watch on financial transactions relating to fisheries since the last some months, got to know that three leading industrialists from coastal Karnataka were conducting business by hoodwinking the government. A team of 150 officials including seniors got into the act.

On February 8, offices and residences of the industrialists at Udupi and city, houses, offices at Mangaluru, Bengaluru, Hubballi, Panaji, Belagavi etc were searched. In an official statement, the department confirmed that it has got to know about illegal activities of the concerned. The officials also said that the industrialists were found to have violated Benami Properties Transfer Act 1988. They also found that these industrialists had obtained certificates about their products being of high quality, by influencing laboratories and processing centers. The officials said that they found that the fish oil supplied by them was of substandard quality although the certificates stated otherwise. They also stated that acting in other names, these industrialists also misused diesel subsidy.

It is learnt that they evaded tax by distributing their annual income among family members, employees, relatives etc, besides showing fisheries industry income under agricultural income. They also had violated the Customs Act by importing fish food from foreign country and exporting the same product abroad. In the purchase of machinery, they undervalued the machinery and avoided tax liability, the department said.

These industrialists hosted grand parties for people who were involved with them in business. It was found that a China-based company had invested in the business of these fisheries industrialists. The Chinese company paid commission to them through illegal Hawala deal. Hawala fund transfers to Mauritius, Oman, Africa etc were found and records pertaining to foreign investment and finances were recovered. The officials said that Black Money (undisclosed foreign income and assets) Act was also violated by these people.