It is not the first time that the promoters of Kairali TMT steels, whom GST Intelligence has detained for Rs 100 Crore tax fraud, have found themselves in the public eye for the wrong reasons.
A November 2016 investigation by government agencies into the activities of the Kalliyath Organisation, which is said to have ties to the infamous Peace International School, showed the group laundered crores of illicit money in November 2016 during the demonetisation event. The Income Tax (IT) Department’s Financial Intelligence Unit has also initiated an investigation into the group’s real estate dealings, alleging that it sold homes worth crores to overseas investors.
Their operations came under scrutiny after the IT Department disclosed the group’s widespread financial theft following demonetisation. Agencies have frozen the group’s bank accounts and recorded the entire staff’s statements. Additionally, the bank accounts of individuals with whom the group conducted business are monitored. According to the investigation’s findings, Kalliyath conducted business transactions worth crores of rupees using prohibited Rs 500 and Rs 1000 notes. The shady operations began in November 2016 and were uncovered during an examination by an investigation team. The investigation team scrutinised the account data of the group’s three firms and conducted raids at 37 of the group’s locations dispersed across southern states.
Officers stated that around 50% of commercial transactions were conducted without sufficient documentation to dodge taxes.
“For the last couple of years, Kalliyath has been operating a parallel account ledger system while presenting another account book to the government,” a senior officer explained.
The group consisted of three companies: Kairali TMT, which was owned by Abdul Gafoor, Kalliyath TMT, which Noor Mohammed Noorsha owned, and Bharathi TMT, which was owned by Yasar Arafath. Noor Muhammed is the Peace International School’s managing trustee. While Kairali is headquartered in Kozhikode, Kalliyath is headquartered in Kochi, and Bharathi is headquartered in Palakkad. Kairali’s secret accounting system was based in Palakkad and Kozhikode, while Kalliyath TMT’s was based in Palakkad and Kochi.
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