Officials raid Swastik Spices and Fore Agro for alleged IT and GST frauds

Hyderabad: Officials from the Income Tax (IT) department on Monday conducted raids at seven different places of Swastik Mirchi outlet and Fore Agro LLP offices, including premises of their owners for alleged violations in filing Income Tax returns (ITRs) and mismatch of GST details in connection with purchase of land worth crores.

Around 6 am, the officials knocked on the doors of Swastik Spices directors -- Vijay Kumar Shah and Rachit Vijay Shah, located at road no. 12, Banjara Hills, Begum Bazar and Elikatta village of Farroqnagar mandal in Ranga Reddy district.

The raids were over suspecting hawala cash transactions as regards Swastik mirchi powder and reported diversion of funds into real estate. The Swastik Spices, which manufactures premier products, including spices and pickles, at Begum Bazar, is a market leader with a PAN India presence.

The agency officials suspect that the business activity in Begum Bazar revolves only around cash transactions and does not accept UPI and digital payments.

Following the allegations, the IT officials reportedly verified the GST and ITR records of Swastik Spices. They found that the company had reportedly purchased huge lands in Shadnagar, Chevella and other places by making cash transactions.

Vijay Kumar Shah is also director of several companies like RV Properties and Developers, Ranganath Ventures, VSRS Vyapaar pvt. ltd and Arya Promoters. Rachit Vijay Shah is also director of VVSS Assets, SVSS Commercial and Ranganath Ventures, among others.

Meanwhile, IT officials also conducted raids on the premises of Fore Agro Private Limited, located at Elikatta village of Farroq nagar in Ranga Reddy district. Its directors are Harsha Vijay Shah and Prachi Trivedi Shah. Incidentally, both Swastik Spices and Fore Agro are registered on the same address- Roxana Fortune, Road No 12, Banjara Hills.

There were also allegations that Swastik owners invested `300 crore on lands in Chevella and Shadnagar for real estate purposes and did not furnish details of sale of properties in their ITRs. However, the officials also verified bank accounts, GST filing details, sale of material and expenditure of these companies.