The Income Tax department on Wednesday raided 38 locations in Delhi and Haryana in connection with a case of ‘unaccounted cash transactions’ involving advocate Manoj Kumar Singh, who specializes in commercial arbitration and alternate dispute resolution.
According to a statement issued by the department, Singh allegedly received substantial amounts in cash from his clients to settle their disputes.
The department recovered Rs 3.5 crore cash, incriminating documents pertaining to unaccounted cash transactions and investments made by him over several years, during its searches. Ten lockers have also been placed under restraint by the department.
Substantial digital data reflecting unaccounted transactions of the assessee (Singh) and his associates, who are financers and builders, has also been recovered, a statement issued by the Central Board of Direct Taxes (CBDT) said.
Investigations have revealed that in one particular case, Singh received “Rs 117 crore from a client in cash, whereas he had shown only Rs 21 crore in his records, which was received through cheque.”
“In another case, he received more than Rs 100 crore in cash from an infrastructure and engineering company for its arbitration proceedings with a public sector company,” the CBDT said.
It added that the unaccounted cash has been invested in the purchase of residential and commercial properties, and in taking over of trusts engaged in running of schools.
“Evidences recovered indicate investment of more than Rs 100 crore in cash in several properties in posh areas in the last two years. The assessee (Singh) and his associates have also purchased several schools and properties, for which also more than Rs 100 crore was paid in cash. He has also taken accommodation entries worth several crores,” CBDT said.
According to the website of his law firm, Singh represents clients in cross border financial disputes and investment disputes.