Maharashtra Sales Tax Department has conducted raids on 37 companies in Mumbai and unearthed Hawala transaction worth 6,500 crore rupees. A team of sales tax officials conducted raids at 12 places across the city on 4th July 2011
The Sales Tax Department has now referred the entire matter to the Income Tax Department, as the sales tax evasion in these cases amounts to only 10 to 15 crore rupees.
Sales Tax Commissioner Sanjay Bhatia said initial investigations point towards linkages in Delhi and other states. The department will also lodge an FIR in this matter against one person, who has been identified as the kingpin of the racket.In this case, Hawala firms were issuing fake bills to help companies evade tax in lieu of commission. Mr Bhatia said the beneficiaries were mainly diamond and metal firms.