Dainik Bhaskar Group accused of using shell entities to evade tax
Sources said that the group has been accused of massive tax evasion by way of claiming bogus expenses and purchases using shell entities.
Even as doubts continue to be expressed over the searches carried out by the Income Tax department against the Dainik Bhakar group, sources in the department said that the action was taken after analysis of the departmental database, banking enquiries and other discrete enquiries.
A total of 32 premises, including residential and business premises spread over the cities of Mumbai, Delhi, Bhopal, Indore, Jaipur, Korba, Noida and Ahmedabad, were searched by sleuths of the Income Tax department.
Sources said that the Group has been accused of massive tax evasion by way of claiming bogus expenses and purchases using shell entities.
Sources further said that the Group had floated several paper companies for this purpose, with their employees as shareholders and directors.
Besides media, the Dainik Bhaskar group is involved in various sectors like power, textiles and real estate and has a turnover of over Rs 6000 crores per annum.
The group has more than 100 companies, including holding and subsidiary companies. The flagship company is DB Corp Limited, which publishes Dainik Bhaskar.
"The money siphoned off in this manner was routed back into various personal and business investments, in the form of share premium and foreign investments through Mauritius-based entities," sources said.
The agency also alleged that the family members' names were figured in the Panama leaks case.