Two days after the I-T department searched the premises linked to the Dainik Bhaskar Group and Bharat Samachar Group, the sources said that the agency issued statements without naming any companies, alleging that it had detected income irregularities of ₹700 crore and unaccounted transactions exceeding ₹200 crores in two cases.
The official report stated that Dainik Bhaskar was involved in businesses in various sectors, including media, power, textiles, and real estate, with over ₹6,000 crore turnover per annum. It further said that “Twenty residential and 12 business premises spread over nine cities including Mumbai, Delhi, Bhopal, Indore, Noida and Ahmedabad have been covered,”
Sources said that the group has over 100 companies and alleged “During the search, it was found that they have been operating several companies in the names of their employees, which have been used for booking bogus expenses and routing of funds…several of the employees, whose names were used as shareholders and directors, have admitted that they were not aware of such companies and had given their Aadhaar card and digital signature to the employer in good faith,”
Adding that income escapement detected so far was ₹700 crore spread over six years, sources informed “Such companies have been used for multiple purposes namely; booking bogus expenses and siphoning off the profits from listed companies, routing of funds so siphoned into their closely held companies to make investments, making of circular transactions, etc.,”
Alleged violations under the Companies Act and the Listing Agreement prescribed by the Securities and Exchange Board of India for listed companies, apart from application of the Benami Transaction Prohibition Act, would also be examined.
“Cyclical trading and transfer of funds among group companies engaged in unrelated businesses to the tune of ₹2,200 crore has been found,” it said. The agency alleged that the group’s real estate entity was sanctioned a term loan of ₹597 crore, of which ₹408 crore was diverted to a sister concern as loan at a low interest rate of 1%.
“The listed media company does barter deals for advertisement revenues, whereby immovable properties are received in lieu of actual payments. Evidence has been found indicating cash receipts in respect of subsequent sale of such properties…a total of 26 lockers have been found in the residential premises of the promoters and key employees of the group…,” it said.
Apart from this, the agency alleged that one group branch voluntarily disclosed an income of ₹20 crore when confronted with evidence. It also alleged that unaccounted layering via bogus entities exceeded ₹170 crore, while unaccounted transactions exceeded ₹200 crore.
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