Big accounting fraud unearthed at Ramky Group Hyderabad

    The Tax Department searches at Ramky Group in Hyderabad today led to unearthing of an artificial loss of approximately Rs 1,200 crore. The search revealed that the Group had incorrectly claimed bad debts to the tune of Rs 288 crore on account of related party transactions, which was set off against the profits earned.

    The entities and their associates have admitted to having an unaccounted income of Rs 300 crore and have also agreed to pay the tax, a release from the I-T department on Friday said. The searches were carried out on Tuesday, on the allegations that Ramky Group has shown huge losses.

    Ramky Group involved in big accounting scam

    During the searches, incriminating documents relating to this artificial and incorrect claim were found. Unaccounted cash transactions with the associates of the group have also been detected during the search, and the quantum and modus of the same are under examination.

    Apart from the incriminating documents, several loose sheets were seized, indicating the involvement of the group in unaccounted transactions. It was also found that the group had sold its majority stake to a non-resident entity based in Singapore during the 2018-19 Financial year and had earned huge capital gains.

    The group had subsequently devised various schemes by entering into a series of share purchase, sale, non-arm’s length valued subscription and subsequent bonus issuance, creating a loss which was set off against the capital gains earned. It was also found that the loss was artificially created to set off the respective capital gains. Further investigations are in progress.


    Latest Updates

    Related Articles

    Rohit Sharma Highlights India’s Struggles, and the ODI Loss to Australia

    Rohit Sharma in a post match interview after loosing the series to Australia expressed...

    BookMyChef Review: The New On-Demand App for Foodies Offers Fresh Culinary Experiences

    BookMyChef is the latest on-demand mobile platform for foodies, allowing you to book a...

    Holy Ramadan 2023: Eyes on the sky, Search for Crescent Moon

    Ramadan 2023 Live Updates: The holy month of Ramadan is an important annual event...

    Chaitra Navratri 2023: How to Celebrate and Spread the Joy this Year

    Chaitra Navratri 2023: This day marks an important Hindu festival that is celebrated every...