Bhubaneswar: Income Tax Department officials on Tuesday conducted simultaneous raids on multiple locations in connection with an alleged Rs 100 crore scam involving two Odisha-based iron ore mining companies.
According to preliminary information, searches are in progress at several places associated with MGM Minerals Limited and SN Mohanty, including in Joda and Barbil areas in Keonjhar. Raids are also reported to be underway at the company’s corporate headquarters in Bhubaneswar.
Sources further said raids are being conducted the company’s offices located in Barbil, MD Prabodh Mohanty’s house at New Forest Park Colony and corporate headquarters at Forest Park in Bhubaneswar. Search operation is also reported to be in progress at the bauxite mine of the group. A total of six teams of the I-T department are carrying out the raids and scrutinising several documents and files.
Searches are also stated to be in progress at an associate office of the company in Kolkata, Ghaziabad and Gurgaon. The IT department officials are reportedly questioning the company’s MD and other senior officials in connection with the findings in the 2022 Comptroller and Auditor General (CAG) report, which exposed discrepancies in the operations of at least 25 iron ore mining companies. MGM and SN Mohanty were allegedly the primary beneficiaries of the alleged scam.
THE SEIZURE
Sources later informed that the searches led to the seizure of Rs 2 crore and over 25 lockers.
“The two mining companies allegedly manipulated the grade of iron ore to gain profit and evade tax. When the quality of the iron ore is downgraded, the companies pay less royalty and evade taxes. Two companies are involved in hawala transactions. More than cash, we are looking for documents to prove that the companies were involved in hawala transactions,” TOI reported, quoting an I-T official.
The illicit funds were transferred to the British Virgin Islands and subsequently brought back to India. The SN Group is also accused of using these funds to establish another mining company, Kai International Private Limited.
The searches will continue for four to five more days to ascertain the alleged irregularities committed by the two companies, it added.
Company officials are yet to comment on the ongoing raids.
