I-T Dept Launches Raids Over 40 Locations Linked To Builders, Industrialists In Gujarat's Rajkot, Morbi

(MENAFN- IANS) Rajkot, Sep 16 (IANS) The Income Tax (I-T) Department, on Tuesday, launched a massive operation in Gujarat's Rajkot and Morbi, raiding more than 40 premises linked to prominent traders, builders, and industrialists, including the Levis Ceramics Group.

More than 150 officers and staff members were deployed in the coordinated action, which began early morning.

Teams fanned out across multiple locations simultaneously, examining financial documents, hard disks, and other digital records as part of the probe into the suspected large-scale tax evasion.

Though the I-T department has not issued an official statement yet, sources suggest that the raids may uncover substantial cases of benami assets and concealed income.

The raids are still underway, and further details are expected to emerge in the coming days.

Recent I-T raids in Gujarat have uncovered massive unaccounted transactions: in one case involving a diamond firm and exporter, searches at 23 locations across Gujarat and Mumbai revealed more than Rs 1,040 crore in sales through a Hong Kong entity, purchases of around Rs 189 crore, plus additional unaccounted purchases and sales in diamond and real-estate businesses totalling more than Rs 161 crore. Another operation found unaccounted cash of Rs 1.8 crore and jewellery valued at Rs 8.3 crore, along with the seizure of 18 bank lockers.

These cases underscore the scale of tax evasion and benami transactions being probed in the state.

The I-T Department in Gujarat plays a dual role of revenue collection and enforcement.

On one hand, it is a key contributor to the Union government's direct tax collection, with Gujarat consistently ranking among the top five states for income tax collections, driven by sectors such as gems and jewellery in Surat, the ceramic industry in Morbi, pharmaceuticals in Ahmedabad, and oil and gas in Jamnagar.

On the other hand, the I-T Department functions as a watchdog, carrying out large-scale raids and surveys to check tax evasion, benami transactions, and undisclosed assets.

Its operations often involve simultaneous raids across dozens of premises, seizure of cash and jewellery, and scrutiny of digital records, ensuring greater compliance in Gujarat's high-revenue but cash-driven industries.

Beyond enforcement, the I-T Department also undertakes taxpayer services such as grievance redressal, awareness drives, and return processing, making it a crucial pillar in both sustaining Gujarat's reputation as an economic powerhouse and curbing the shadow economy.

MENAFN16092025000231011071ID1110069457