The Income Tax department on Wednesday carried out a search and seizure operation at various locations in Andhra Pradesh, Chhattisgarh, Nagpur and Kolkata. The investigation centered around a group based in Visakhapatnam, engaged in extraction of vegetable oils, mining of manganese ore, and manufacturing of ferro-alloys.

According to a PIB release from the Ministry of Finance, officials seized hand written diaries and documents, loose sheets depicting undisclosed cash transactions and more. The operation has so far unearthed incriminating evidence relating to undisclosed financial transactions of about Rs. 40 crore. Around Rs 3 crore in unaccounted cash has also been seized so far.

"The group is inflating expenditure, indulging in cash sales of oil and under invoicing of slag. Transactions in the form of suppression of sales and inflation of expenditure were unearthed," the press note added.