How an Ahmedabad man duped the Income Tax dept 60 times
Updated: Jan 23rd, 2025
A man from Ahmedabad scammed the Income Tax (IT) department by presenting bogus documents for cash seized during raids, claiming it as his own, and then returning the cash to its original owners.
Kamlesh Shah, a resident of Science City Road in Ahmedabad, has allegedly duped the IT department 60 times by claiming seized cash as his own during raids. By producing backdated documents stating that the cash belonged to him and he lent the money to companies, Shah successfully manipulated IT officers until his scam was finally uncovered.
Shah’s wife Meena Shah, and associates Devang Jagdish Vyas, Gaurang Panchal from Navrangpura, and Ramesh Thakkar were also reportedly involved in the scam.
Additionally, entities such as N R Company in Ratanpole, Ahmedabad and N D Gold Jewellery LLP at C G Road were also named for their involvement in the scheme.
Modus operandi
During a raid in Ahmedabad, Delhi, or Mumbai, Shah would quickly prepare backdated documents showing that the confiscated cash belonged to him and had been provided to the raided company.
He would approach the IT department with these documents, claiming the cash was his and linked to his agricultural business. Since agricultural income is primarily cash-based, it was easy for Shah to justify his claim.
In cases where unaccounted cash is seized during raids, a hefty 77% tax is levied, along with a 6% penalty and additional interest. Together, these costs often exceed the amount of cash seized. To help companies avoid these financial burden, Shah would claim ownership of the cash and present it as legitimate business income, thus preventing the IT department from confiscating it.
Once the cash was released, Shah would return it to the raided companies or promoters after deducting his 30% commission. Over time, Shah reportedly executed this scam in 60 cases.
Shah’s fraudulent activities were not limited to Ahmedabad. Complaints have been registered against him in 60 different locations across the country for his involvement in this racket. By exploiting loopholes in the system and presenting himself as the owner of confiscated cash, Shah managed to dupe the IT department repeatedly.
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