The income tax (I-T) department on Thursday revealed details of searches they carried out on November 6 at 37 properties of civil contractors in Mumbai and Surat. Many of these contractors have worked with the Brihanmumbai Municipal Corporation (BMC).
In the searches, incriminating documents were seized that show large-scale tax evasion and money laundering. Some documents have also led to the detection of the use of bogus companies.
The I-T department has come across irregularities involving ₹735 crore. Among the contractors, two were blacklisted by the BMC in 2017 after a probe into the ₹350-crore road scam found them to blame for shoddy and substandard work.
“Incriminating evidence showing large-scale tax evasion and money laundering has been found. It has also led to the detection of the use of bogus companies [floated by entry providers] for giving entries to businesses in the form of loans or bills for expenses, etc,” the I-T statement, released on Thursday, said.