Geo-surveillance, managers questioned: Raids continue at Dhiraj Sahu's Jharkhand home
The Income Tax Department's marathon raids at Congress MP Dhiraj Sahu's residence in Jharkhand continued on Wednesday. A whopping Rs. 351 crore and around three kg of gold ornaments have been seized from his premises so far. Officials claim this is the largest cash seizure in a single action by any investigative agency in India. The I-T department sleuths reportedly used geo-surveillance machines at Sahu's premises to check whether any money was hidden underground.
Why does this story matter?
The I-T Department has raided several locations linked to Boudh Distillery Private Limited (BDPL) in Odisha, Jharkhand, and West Bengal on suspicion of tax evasion since last week. A substantial amount of the total cash seized was from the Odisha-based distillery reportedly connected to Sahu. Sahu has been a Rajya Sabha MP from Jharkhand since 2010, and his family has a long association with the Congress party. The party has distanced itself from Sahu but has not expelled him officially.
Over 100 I-T officials, 40 machines deployed
During these raids, over 100 I-T officials were present, utilizing more than 40 machines to count the confiscated cash. On Wednesday, at least 12 income tax officers arrived at Sahu's residence in Jharkhand's Lohardaga to conduct a survey, accompanied by Central Industrial Security Force (CISF) personnel. The managers at various firms associated with Sahu were also questioned about the case.
Geo-surveillance machine in action at Sahu's premises
What will happen to the seized cash?
The seized money has reportedly been deposited into a Provision Deposit (PD) account managed by the I-T department at a State Bank of India (SBI) branch in Odisha. The I-T department's Investigation Unit is handling the case, examining all details and books of accounts to prepare an assessment report within 60 days. Once the assessment order is complete, those accused and suspected in the case will have the chance to explain their income sources.
Tax, penalty, and interest to be deducted from unaccounted cash
The entire investigation usually takes 18 months, following which the agency considers the evidence. After determining how much of the seized cash is illegal, 30% is deducted as tax from the unaccounted cash and 60% as a penalty for the illegal cash. Suspects also pay interest on the total seized money. If any money is to be returned to the suspect after deductions, they are issued a demand draft, and if additional payment is needed, the suspect is notified.
