The Income Tax department is understood to have detected an evasion of Rs 502 crore (Rs 5.02 billion) by two major steel manufacturers after it conducted searches and surveys against them in various parts of the country.
The department has detected evasion in two companies-- Bhushan Steel and Bhushan Power and Steel after it undertook action at 11 premises in cities like Delhi, Chandigarh, Ghaziabad, Raigarh, Ranchi, Mumbai and Kolkata.
"The companies have admitted to tax evasion to the tune of Rs 502 crore. The investigations are still on and prohibitory orders have been issued at various locations of the companies," claimed an Income Tax department source, who did not wish to be named.
When contacted, a Bhushan Steel official said he was unaware of the development and an executive of Bhushan Power and Steel said he had no knowledge of the matter. According to sources, the tax department has detected evasion under heads like introduction of unaccounted investments in share capital of group companies, investments in properties and booking bogus expenditures in companies.
The search and survey began on Wednesday at 11 premises of the two companies and the operation was still on.
While Bhushan Steel is led by Brij Bhushan Singhal and his son Neeraj Singhal, Bhushan Power and Steel is headed by Brij Bhushan Singhal's elder son Sanjay Singhal.
