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IT dept cracks the whip on onion, potato price-riggers

The income tax department has unearthed a massive kickback racket in onion-potato trade involving commission agents, following raids and searches carried out yesterday on the premises of more than 12 agents in Bombay and New Bombay. Nine of them admitted to tax evasion to the tune of Rs 54.4 million so far.

According to IT sources, the commission agents evaded tax by way of higher billing, rigging prices and showing inflated expenses. They sent drafts of higher amounts toward remittance of payment to upcountry suppliers and in return received kickbacks in the form of commission.

Income tax sleuths yesterday carried out searches in as many as 46 premises, 37 of them in New Bombay which houses the wholesale onion-potato market. The department will take further action after investigations of the incriminating documents were completed, the sources said.

According to the IT sources, these middlemen brokered for a commission of 6.5 per cent and their dealings involved with onion suppliers from Maharashtra and potato traders from Punjab, Haryana and Uttar Pradesh from where supply of the staple vegetable came to the state.

They allegedly advised the suppliers from upcountry for making higher billing and in turn also asked the wholesale traders in local market to sell these commodities at higher prices. Evidence of indulging in price rigging had been found, the sources said.

Similar raids were being carried out since last week by the income tax department on shops and residential premises of onion traders at Lasalgaon, known as the onion bowl of Maharashtra, Manmad, Pimplegaon and Basvant in Nashik district, reports from Nashik stated.

The IT operations against onion and potato commission agents were carried out in Bombay by a strong posse of 200 officers and personnel of the investigation wing.

UNI

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