Income Tax Raids Reveal ₹800 Crore in Unaccounted Cash in Andhra Pradesh and Telangana

Income Tax Department's Search Operations in Andhra Pradesh and Telangana

On 10 November 2021, the Income Tax Department executed extensive search and seizure operations at over 30 locations connected to three significant real estate groups in Visakhapatnam, Hyderabad, Vizianagaram, Srikakulam, Kurnool, Ananthapur, Kadapa, Nandyal, Bellary, and other regions across Andhra Pradesh and Telangana.

Key Findings

The operations yielded several critical revelations:

• Detectable unaccounted cash transactions amounted to ₹800 crore, significantly surpassing initial expectations.
• Authorities seized unaccounted cash of ₹1.64 crore along with jewellery valued at ₹90 lakh during the raids.
• Prohibitory orders were enforced on nine bank lockers to hinder any further asset concealment.
• Incriminating materials were seized, including handwritten records, unofficial agreements, and digital data from software designed to delete records of unreported cash from official financial statements.
• The involved groups inflated their expenses through fictitious claims and received substantial cash payments exceeding officially registered property values. These funds were subsequently utilized for additional land acquisitions and other expenses.

Legal and Regulatory Context

The conducted raids fell under Section 132 of the Income Tax Act, specifically targeting sophisticated tax evasion tactics prevalent in the buoyant real estate sector.

Recent amendments from the Finance Act 2025 have empowered tax authorities with enhanced capabilities for conducting block assessments and imposing more stringent penalties on undisclosed income, which includes digital assets.

Wider Implications

These operations underscore the government’s heightened commitment to combating tax evasion within the rapidly developing real estate markets of Andhra Pradesh and Telangana, characterized by high-value property transactions.

The involvement of advanced digital tools for evasion indicates the evolving landscape of financial crimes, emphasizing the necessity for more effective investigative methodologies.

Further Investigations

Authorities will continue to scrutinize both digital and physical evidence that was seized, with further actions anticipated as the investigation unfolds.