Income Tax Department Launches Major Search Operation Against Surat-Based Diamond and Real Estate Group
In a significant enforcement action, the Income Tax Department has carried out extensive searches at multiple premises associated with a prominent diamond manufacturing and real estate development group based in Surat. The operation targeted at least 15 locations across four major Indian cities, including Surat, Mumbai, Bengaluru, and New Delhi, as part of an investigation into alleged undisclosed earnings from the group's real estate business.
Wide-Ranging Searches Across Multiple Cities
The search operation focused particularly on Mumbai, where the younger owners and partners of the group maintain residences, offices, and manufacturing centers. This multi-city approach underscores the extensive reach of the investigation, which aims to uncover financial irregularities and hidden assets.
Group's Diversified Business Interests and Political Connections
The Surat-based group has diversified interests beyond diamonds and real estate, including significant involvement in the education sector through institutes operating in various parts of Gujarat. However, the current investigation centers on their property development activities, particularly their focus on commercial and industrial properties in Surat and upcoming projects outside Gujarat.
Political affiliations have played a crucial role in the group's operations, with owners maintaining close ties to political parties and their leaders. One of the brothers among the owners previously served as a legislator, and the group's political alignment has shifted over time, leading to conflicts with certain powerful politicians.
Criminal History and Ongoing Investigation
The group's expansion from diamond manufacturing to real estate development has been marred by legal troubles. Some owners have faced criminal cases in the past, including arrests for alleged fraud and cheating. The current investigation specifically examines undisclosed investments in recent projects and land deals, with suspicions that funds from an insolvent jewelry company may have been channeled into these developments.
Expanded Probe into Associates and Liaison Activities
The investigation has broadened to include individuals associated with the group, particularly those involved in liaison work who maintain close connections with top politicians and government officials. A group of lawyers and their associates are also under scrutiny, highlighting the comprehensive nature of the enforcement action.
The group originally hails from Amreli district in Saurashtra and has established diamond interests worldwide before diversifying into real estate. This latest Income Tax operation represents one of the most significant challenges to their business operations, with potential implications for their political relationships and future projects.
