Rs. 50 crore-worth luxury cars seized from tobacco mogul's home
The Income Tax Department conducted raids in over 20 different locations, including Kanpur, Delhi, Mumbai, and Gujarat, linked to Banshidhar Tobacco Company, on Thursday. During the raids, several luxury cars worth over Rs. 50 crore, including a Rolls-Royce Phantom, McLaren, Lamborghini, and Ferrari, were found at the residence of the company owner's successor, Shivam Mishra, in Delhi. These raids were carried out by 15 to 20 teams over alleged inconsistencies in the company's reported turnover.
Why does this story matter?
Banshidhar Tobacco Company is a key player in the tobacco market, known for supplying products to major pan masala conglomerates. According to reports, the company's declared income is between Rs. 20 and Rs. 25 crore, whereas its actual turnover is between Rs. 100 and Rs. 150 crore. This discrepancy has raised concerns about the strategies employed by the company to conceal its true financial standing.
Tax evasion and GST violations
The IT teams also reportedly seized Rs. 4.5 crore in cash during the raids from Mishra's home, along with several documents and laptops. Additionally, the raids revealed that the company had not only violated income tax laws but also goods and services tax (GST) regulations. Moreover, the tobacco company was found to be issuing fake checks to a company listed in its accounts while selling products to large pan masala companies.
Authorities looking into owner's bank transactions
Authorities are also looking into the bank transactions and property records of the tobacco business head, KK Mishra. The businessman's enterprises, Banshidhar Export and Banshidhar Tobacco, based in Nayaganj, Kanpur, are said to have expanded their business operations overseas. Reportedly, the owner of the company, a resident of Aryanagar, has also shifted his business from Kanpur to Delhi. The company has been in the manufacturing business for 32 years.
