I-T claims over Rs 1,000 cr black income in Refex Group raids; firm denies
Sources allege bogus purchases, undisclosed foreign investments and hawala-linked funding as multi-city searches widen to financiers
The Income Tax Department has claimed to have detected unaccounted income exceeding Rs 1,000 crore and seized unexplained cash, gold and silver jewellery worth over Rs 70 crore during ongoing searches on Chennai-based Refex Industries Ltd and its promoter Anil Jain since December 9.
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However, in a press statement issued on December 11, Refex Group dismissed circulating documents and messages about the findings as "unauthenticated, unverified, and fake," urging stakeholders not to rely on them. The company emphasised that no official communication has been released by authorities and affirmed its full cooperation with the ongoing process while maintaining normal business operations.
Raids expose massive evasion
According to sources familiar with the matter, the multi-city raids covered more than 40 premises linked to the listed company, its associates, hawala operators and a city-based financier, allegedly exposing large-scale tax evasion.
The I-T probe so far claims there were bogus purchases of ₹1,112 crore in the coal purchase and fly-ash handling business. It states that ₹382.68 crore was received as share capital from 53 persons or entities, of whom 15 do not file income tax returns at all while 37 others have not disclosed the investment in their ITRs, with many subscribers being employees or close aides of the promoter, indicating possible routing of unaccounted money.
The probe also flags an undisclosed investment of USD 30 million (₹250 crore) in the Swiss pharma firm Astro Viz. It notes that ₹115 crore was parked in DN Energy Pvt Ltd and immediately diverted. It states that companies opened in the name of the promoter’s driver received ₹8.5 crore in cash deposits and routed transactions exceeding ₹200 crore. It also lists lavish assets including a private jet worth ₹37 crore, luxury cars worth ₹10 crore and high-end watches worth ₹4 crore.
Probe widens to financiers
The tax net also allegedly covered leading financier Rajesh Surana, who advanced ₹312 crore to Aradhya Infra in a suspected loan-layering and hawala operation. Details of illegal transfer of over ₹10 crore through non-banking channels have been found.
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Searches are still continuing, and officials claim the final figure of unaccounted income could rise further.
Refex Industries, in its statement, reiterated its commitment to legal compliance and ethical conduct, requesting the public to avoid spreading speculative information unless verified by competent authorities. Refex Industries shares closed 4.97% lower at Rs 428.65 on BSE on Thursday amid the reports. The company has not issued further comments beyond its December 11 statement.
