Sonu Sud - Rs. 20 crore tax evasion: FCRA breach allegation

Evidence was found during the investigation at 28 places, according to a statement issued by the CBDT

Mumbai: The Central Board of Direct Taxes (CBDT) on Saturday alleged that actor Sonu Sud and his associates had paid Rs. It has evaded taxes of up to Rs 20 crore and claimed that it turned over unaccounted income in the form of bogus unsecured loans from several bogus entities after the Income Tax Department raided Sonu and its affiliated Lucknow-based infrastructure group.

Sonu is also accused of violating the Foreign Contribution Regulation Act (FCRA) by raising donations from abroad. The official also claimed that objectionable evidence of tax evasion was found during the investigation. So far, Sonu has made 20 alleged bogus entries, the CBDT said in a statement.

The loan providers have admitted that they issued checks in exchange for cash and the professional receipt has been shown as a loan for tax evasion, the policy-making body for the tax department said. Bogus loans were used to invest and acquire property. The total amount of tax evasion so far has been up to Rs 20 crore, according to a statement and official sources.

It also mentions a charity organization set up during the Kovid epidemic last year. The organization, which started on July 21, 2020, has received a donation of Rs 18.94 crore till April 1, 2021. Of this, only Rs. 1.9 crore has been used and Rs. 17 crore are unused in bank accounts.

The statement also said that a fund of Rs 2.1 crore has been raised from abroad on crowdfunding platforms in violation of FCRA rules. The actor has invested a large amount of funds in a joint venture with a Lucknow-based infrastructure group and evidence of tax evasion and irregularities has been found in the account book.

The group is involved in bogus billing of subcontracting expenses and embezzlement of funds. Evidence of such bogus contractors up to Rs 65 crore has been found. Evidence of digital data of unaccounted cash expenses, unaccounted scrap sales and unaccounted rock transactions has also been found. A bogus circular transaction of up to Rs 175 crore has been found with Infra Group's Jaipur-based infrastructure company.

Further investigations are underway to find out the full extent of the tax evasion, the statement said. 11 lockers have been placed under restraining order and Rs 1.8 crore cash has been seized during the road. A total of 28 locations in Mumbai, Lucknow, Kanpur, Jaipur, Delhi and Gurugram are being investigated.