The Income Tax Department on Thursday launched a major operation in Mumbai, searching the premises of multiple food and beverage companies suspected of large-scale tax evasion. The action, based on specific intelligence, targeted an estimated 20 to 24 firms allegedly involved in undisclosed 'out of the books' cash transactions.
Restaurant Co-Owned by Shilpa Shetty Under Scanner
Among the entities covered in the search was a restaurant co-owned by Bollywood actor Shilpa Shetty. Official sources confirmed that some office premises linked to the restaurant were searched. They, however, explicitly denied reports that the actor's private residence in Mumbai was raided by tax officials.
The investigation is a standalone probe by the Income Tax Department. Authorities clarified that it is not connected to the Maharashtra Police FIR filed against Shetty and her husband Raj Kundra concerning separate fraud charges. It is also unrelated to a case registered by Bengaluru police against a local restaurant, also reportedly co-owned by Shetty, for allegedly operating beyond permitted hours.
Shetty and Kundra Assert Cooperation and Faith in System
A day prior to the searches, on Wednesday, Shilpa Shetty and Raj Kundra had addressed the allegations against them through a social media statement. They categorically denied any wrongdoing and emphasized their full cooperation with the investigating agencies.
The couple expressed confidence that justice would prevail, stating they have complete faith in the country's law enforcement and judicial system. Their statement aimed to pre-emptively counter the speculation surrounding the various legal matters.
Focus on 'Out of Books' Cash Dealings
The core of the I-T Department's action revolves around the alleged practice of off-the-record cash transactions. Such dealings allow businesses to conceal their true income, leading to significant evasion of Goods and Services Tax (GST) and corporate income tax.
The widespread search operation across numerous companies signals a crackdown on this practice within Mumbai's lucrative food and hospitality sector. The department is expected to scrutinize financial documents, digital records, and transaction trails seized during the searches to quantify the alleged tax evasion.
As the investigation unfolds, the focus remains on the financial irregularities, with the celebrity link adding a layer of public interest to the otherwise routine tax compliance drive.
