CHENNAI: The Income Tax Department revealed on Thursday that it identified tax evasion exceeding Rs 1,000 crore and found an unexplained Rs 250 crore investment in a Switzerland-based pharmaceutical company amid ongoing search operations at Refex Group and its related entities. The searches, initiated on Tuesday by the Income Tax Department’s investigation directorate in Chennai, targeted Refex Industries Ltd — the group’s main company involved in refrigerant gases, ash handling, power trading, and solar power — along with financiers, hawala operators, and jewellery businesses connected to the promoters.
As per a report in TOI, officials disclosed that the searches uncovered Rs 1,112 crore in fake purchases, primarily linked to coal procurement and ash-handling contracts. It was also discovered that Refex Industries received Rs 382.68 crore in equity contributions from 53 individuals and entities, including 15 non-filers and 37 who did not report these transactions in their tax returns. Many contributors were employees or associates of the promoters, suggesting that the investments may involve unexplained funds routed through benami entities.
Documents seized during the operation indicated the group’s US$30 million investment in Swiss pharmaceutical company Astro Viz, the origin of which is under investigation. Investigators also noted Rs 115 crore invested in DN Energy Ltd, funds that were allegedly diverted shortly after being credited. The department found that the promoter established shell companies in the name of his driver, through which Rs 8.5 crore in cash deposits and over Rs 200 crore in transactions were processed.
Officials further reported significant expenditures by the promoter, including Rs 37 crore on a private jet, Rs 10 crore on luxury vehicles, and Rs 4 crore on high-end watches. Concurrently, searches were conducted on financier Rajesh Surana, who is said to have advanced Rs 312 crore to Aradhya Infra, which subsequently lent the money further. The involvement of hawala operators facilitating over Rs 10 crore through illegal non-banking channels is also being investigated.
To date, the department has identified more than Rs 1,000 crore in undisclosed income and recovered Rs 70 crore in unaccounted cash, gold, and silver. The investigation remains ongoing.
In a statement issued Thursday, Refex Group said it is cooperating fully with authorities to ensure the process is completed smoothly and transparently, adding that its business operations continue as usual. The company emphasized its commitment to legal compliance, ethical conduct, and regulatory transparency, and urged stakeholders and the public to refrain from relying on or spreading unverified information unless officially confirmed by competent authorities.
Leave a Reply