Mumbai: IT dept raids BMC's civil contractors, uncovers irregularities worth Rs 735 crore

The Income Tax department (IT) raided 37 residential and commercial sites of Brihanmumbai Municipal Corporation's civil contractors in Mumbai and Gujarat's Surat, allegedly involved in acts of financial misconduct.

The IT department stated on Thursday that they carried out the raids at various sites belonging to Brihanmumbai Municipal Corporation on November 6 in which they found evidence of bogus entries and fake expenditure to the tune of Rs 735 crore.

The IT department officials added that the BMC officials were involved in 'large scale tax evasion' and 'money laundering'.

"Raids were carried out on entry providers and beneficiaries who have been engaged in the execution of civil contracts mainly in Brihanmumbai Municipal Corporation (BMC)," Income Tax department said in a statement.

"There were reports that certain contractors had taken entries in the form of loans, etc. from entry providers and also inflated expenses in the books of accounts to suppress income," the department added.

The agency also stated that the promoters were involved in a system of 'bank fraud' and 'forgery' to invest in immovable properties and shares of group companies.

The investigation is still underway, a senior Income tax official said.