Dainik Bhaskar Income Tax Raid (2023 Details)

Ramesh Chandra Agarwal founded Dainik Bhaskar in 1958 in Bhopal, Madhya Pradesh. Over the years, the group expanded to 12 states. With edition 65, it is the country’s largest daily newspaper. In this article, we will look over Dainik Bhaskar income tax raid.

Let’s start.

Dainik Bhaskar Income Tax Raids Detail

The Income Tax Department issued a statement detailing a string of wrongdoings and violations committed by the firm, prompting it to conduct investigations against them in multiple locations across the country.

In a statement, the Income Tax Authority said it had found the confiscation of profits from listed companies and fictitious transactions totaling 2200 crores rupees during a raid on the offices of Dainik Bhaskar Group. 

Income tax officials raided 20 residences and 12 businesses belonging to the Dainik Bhaskar Group. They raided nine cities including Mumbai, Delhi, Bhopal, Indore, Noida, and Ahmedabad. According to the Income Tax Service, an investigation found that DB Group operated several businesses on behalf of its employees.

Several employees, who were directors and shareholders during the search, were unaware of these companies. They provided their Aadhaar cards and digital signatures to the employer in good faith.

Some relatives, who were unaware of the transaction, willingly and knowingly signed the papers.. They had no control over the operations of the company in which they were to become directors and shareholders.

Accounting of wrong expenses and skimming of profits:

Dainik Bhaskar Group used such companies for distinct purposes. This includes accounting for false expenses, skimming the profits of publicly traded companies, diverting funds from investments in private companies, and conducting circular transactions.

The nature of such bogus expenditures includes the provision of labor, transportation, logistics, construction work, and supposed accounts payable, resulting in widespread tax evasion of Rs 700 crores over 6 years. The IT Department suspects that the group’s use of multiple shifts may have resulted in high levels of tax evasion.

Additionally, the IT department discovered that the company was doing periodic transactions and remittances between group companies worth Rs 2200 crores.  Investigations revealed that the company had faked transactions without actually moving or delivering the goods.

The Group’s real estate entity, which operates as a shopping mall, was given approval for a term loan of Rs 597 crore by the State Bank. A total of Rs 408 crore was divertible to a sister company at a 1% interest rate. Real estate companies charge interest payments on taxable profits, which are divertible to the holding company’s personal investments.

Dainik Bhaskar Group, which operates more than 100 companies, entered into advertising revenue swaps through media channels that received property in lieu of actual payments. The IT department also discovered 26 operational lockers at the residences of the group’s promoters and key employees.

What Is Dainik Bhaskar’s Net Worth in Rupees?

Dainik Bhaskar’s net worth can be around $823.34 thousand.

Who Owns the Dainik Bhaskar Group?

D.B. Corporation Ltd. is a listed company formed by Ramesh Chandra Agarwal, father of Sudhir, Girish, and Pawan Agarwal, who currently own the company.

Who Is the Editor of Dainik Bhaskar?

Sunil Shukla is the editor-in-chief of Dainik Bhaskar.

Wrapping Up

To conclude, around 100 tax officers searched around 30 locations for Dainik Bhaskar in Delhi, Madhya Pradesh, Rajasthan, Gujarat, and Maharashtra. The group’s organizers’ homes and offices were also searched. 

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