A five-day raid by the income tax department on the Madhav and Khurana Groups revealed a transaction worth ₹400 crore in bogus billing. Different accounts were used to carry out these transactions, including the account of Hina Parikh, who is named as director of the Madhav Group.

The raids also revealed several transactions in stocks from the account of Ullas Parikh.

During this raid, more than 20 lockers of both groups were sealed. 

It has been noticed that the promoters of both groups opened accounts in the name of the employees of the company and conducted bogus billing transactions through them.

During these raids, it was revealed that the promoters of the contractor firm had hidden their bogus dealing documents in a safe at their driver’s house.

Company employees and their friends were also found to have stashed bogus documents on them. Documentary evidence has also been found to have been hidden at the homes or farm houses of certain promoters.

Details of bank accounts, mobile, hard disk, and computer data seized during the raid will be verified and analysed.

The accounts of promoter-director Ashok Khurana, Amit Khurana, Vineet Khurana, and Nilakshi Khurana of Madhav Group are being verified.

As the percentage of GST has also been misappropriated in these bogus bills, the GST department will also be notified.

Modus Operandi

Promoters of the Madhav Group of Vadodara and the Khurana group of Ahmedabad are known to be relatives of each other and have dealt with each other in the past. Therefore, their transactions also seem to be related to each other.

Bogus bills were reportedly raised for the government tenders received by them, to give politicians and officials a cut of their price after the tender amount was approved.

The bogus bills were raised for the works done under subcontracts and the payments were cashed in different accounts.

The investigation also revealed that a commission of 5% was given to those whose accounts were used for these activities.

Sources close to the development suggest that the scam is likely to touch ₹800 crore as the investigation moves further.

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