I-T dept raids Chandigarh lawyer who allegedly took ₹217 crore from client

Department raids 38 premises linked to the lawyer in Haryana, Delhi and the national capital region on Wednesday, ₹5.5 crore seized

The Income Tax (I-T) Department has raided a “leading” Chandigarh-based advocate for allegedly evading tax and receiving ₹217 crore “in cash”, tax officials said on Thursday. Cash amounting to ₹5.5 crore was seized during searches.

A Chandigarh lawyer suspected to be receiving substantial amounts in cash from his clients to settle their disputes has been raided by the Income Tax Department.(Getty Images/iStockphoto)

The department raided 38 premises linked to the lawyer in Haryana, Delhi and the national capital region on Wednesday, I-T officials said.

In a statement, the Central Board of Direct Taxation (CBDT) said cash amounting to ₹5.5 crore was seized during searches carried out against the advocate practising in the field of commercial arbitration and alternate dispute resolution.

The Board did not identify the advocate.

Ten bank lockers have been put under restraint, it said.

“He was suspected to be receiving substantial amounts in cash from his clients to settle their disputes. Incriminating documents of unaccounted cash transactions and investments made by the assessee over several years have been found,” the department said.

The CBDT that frames policy for the tax department, alleged that the lawyer in one case “had received ₹117 crore from a client in cash, whereas he had shown only ₹21 crore in his records, which was received through cheque”.

In another case, he received more than ₹100 crore in cash from an infrastructure and engineering company for its arbitration proceedings with a public sector company, the CBDT claimed.

“The unaccounted cash received has been invested by the assessee in purchase of residential and commercial properties and in taking over of trusts engaged in running of schools. Evidences recovered indicate investment of more than ₹100 crore in cash in several properties in posh areas in the last two years,” it said.

The assessee and his associates have also purchased several schools and properties, for which more than ₹100 crore was “paid in cash”, it said.

He has also taken accommodation entries (hawala funds) worth several crores, it said.

The Board said the search teams have also recovered “substantial digital data reflecting unaccounted transactions of the assessee and his associates who are financiers and builders”.