Income Tax Department Raids Hyderabad Pharmaceutical Company

Income Tax Department raids Hyderabad pharmaceutical company, more than Rs 142 crore cash seized.

Income Tax Department raided a pharmaceutical company in Hyderabad. The team has seized more than Rs 142 crore during this period.

The official spokesperson of the Central Board of Direct Taxes (CBDT) has been informed.

According to the Central Board of Direct Taxes, a search operation was conducted on 6 October on a major Hyderabad-based pharmaceutical conglomerate and so far unaccounted income of about Rs 550 crore has been unearthed.

A board spokesperson said that this pharmaceutical group is actively engaged in the business of manufacturing pharmaceutical ingredients (APIs) and formulations.

Income Tax Department raids: Most of the products by the company are exported abroad such as the USA, Europe, Dubai, and other African countries.

In addition, evidence of payment for the purchase of land was also found and several other legal issues were also identified such as personal expenses in the books of the company and land purchased below the respective government registration value.

The officer said that during the search several bank bringers were found, out of which 16 are operated by bringing them. Further investigation is on to ascertain the undisclosed income.

Personal expenses are written to the company account.

Several other legal issues were also detected such as personal expenses were being written off in the accounts of the company and the value of land purchased by the concerned parties was reported to be ‘below the government registration value’.

It alleged that during the raids locations were identified where books of accounts and another bundle of cash were found.

Many documents were also seized.

The CBDT said, “Crime proving documents in the form of digital media, pen drives, documents, etc. were seized and digital ‘evidence’ was collected from SAP and ERP software created by the group.”

The company came into the limelight for making Corona’s medicine and vaccines.

The Hetero group was in the limelight for signing several agreements and being involved in the development of various drugs like Remdesivir and Favipiravir for the treatment of Corona.

The Hetero Group has over 25 production centers in India, China, Russia, Egypt, Mexico, and Iran.

Hetero said last month that it has received emergency use approval from the Drug Controller General of India (DCGI) for a biosimilar version of tocilizumab to treat coronavirus in hospitalized adults.

It is noteworthy that this pharma company is among the companies that have tied up with the Russian Direct Investment Fund (RDIF) for the production of the anti-corona vaccine Sputnik V in India.