Tax raids on Rajesh Exports, Shubh Jewellers

Mangalore Today News Network

Bengaluru, Feb 20, 2015, DHNS: Commercial Tax Department (Enforcement Wing) officials on Thursday raided the corporate office of Rajesh Exports Ltd (REL) and the outlets of its retail arm, Shubh Jewellers, across the State for tax evasion, reportedly worth several crores.

The simultaneous raids were conducted at 67 locations, including 24 in Bengaluru.
A senior official of the department said that the corporate office of REL on Kumara Krupa Road in the City and its manufacturing unit at Whitefield were the two main premises that were raided. REL, one of the world’s leading manufacturers of gold ornaments, is headquartered in Bengaluru.

“We had sought information from Central Excise on the status of the manufacturing unit at Whitefield. Central Excise stated that as per the submission of Rajesh Exports, the unit has been closed since 2008. However, when we checked the unit was found to be operational as on date. This apart, there are also discrepancies in the financial accounts submitted by the company,’’ the official told Deccan Herald.

Sources in the department said that the value of tax evasion according to preliminary enquiry ran into several crores of rupees. Though searches at Shubh Jewellers outlets were over, the documents pertaining to the export and domestic consumption were being verified at the corporate office late into the night. The searches started around 10:30 am.

“The annual statements from 2008 are being verified on the sale within the State and the export of gold. The firm claims it has not evaded any tax. However, our enquiry reveals otherwise. The verification will take some time,” the official said. “We are looking at the business within the state of Karnataka since last six years. The company has 67 outlets of Shubh Jewellers across the State. The case in hand is huge,’’ the officer added.

Rajesh Exports Ltd chairman Rajesh Mehta is one of the richest businessmen listed by Forbes India. The firm has been a leading gold exporter since 2008. In 2013, Rajesh Exports was raided by Income Tax officials for tax evasion. The Directorate of Revenue Intelligence had also registered a case against the company.