I-T raid on Dhiraj Sahu: Here's what will happen to Rs 351 cr seized from Congress MP

The Income Tax Department has made the 'highest-ever' cash recovery after raids on Odisha-based Boudh Distillery Private Limited, which is owned by Congress Rajya Sabha MP Dhiraj Sahu. After five days of counting, the seized amount was calculated at Rs 351 crore. This is the 'highest-ever' haul in a single action by any probe agency in the country. Besides cash, the tax sleuths have also recovered approximately 3 kg of gold ornaments.

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As per the process, the tax officials, during the searches, go through all the cash, financial documents, property papers, electronic devices, gold, and other items. The cash is seized and counted in the presence of two independent witnesses and is put under seal. It is then taken to a national bank. The seized money is deposited into an account maintained by the Income Tax department.

What happens to seized cash?

India Today reported that in Dhiraj Sahu's case, Rs 351 crore has been deposited in the Income tax department's account in the State Bank of India (SBI), Odisha. The money will remain there until the probe agency goes through all the papers and decides how much of the seized cash is illegal.

In such cases, the Investigation Unit of the Income Tax Department goes through all the details and books of accounts and prepares an assessment report in 60 days. Once the assessment order is ready, the accused and suspects in the case are given opportunities to explain their source of income.

The process takes 18 months, during which the agency takes into account the evidence gathered during the probe and income proof given by the suspects. It then decides how much of the seized cash is illegal.

Tax and penalty

Once the probe is over, thirty per cent is deducted as tax from the unaccounted cash and 60 per cent as a penalty on the illegal cash. During the process, the suspects also have to pay interest on the overall seized money. If the suspect is liable to get some money from the seized amount, the I-T department returns the sum through a demand draft. If the I-T department is still owed some money, a notice is sent to the suspect to make the payment.

I-T raid on Dhiraj Sahu  

During the operations, the IT department carried out searches at Sahu's premises in Ranchi and other places. The raids, which began last Wednesday (December 6), were conducted on charges of tax evasion and "off-the-book" transactions. 

The counting involved nine teams of about 80 people from the tax department and various banks, working in shifts in a 24x7 cycle, according to news agency PTI. 

Another team of 200 officials, including security personnel, drivers, and other staff, joined in after the tax officials found 10 almirahs stuffed with cash apart from some other locations. As many as 200 bags and trunks were used to transport the cash for depositing it in various bank branches in Odisha.

(With inputs from Munish Chandra Pandey)