As I-T intensifies raids on distillery linked to Congress MP, cash haul might be ‘highest-ever’: Top Points

NEW DELHI, Dec 9
Rs 250 crore and counting — intensifying its crackdown on a liquor distillery group in Odisha, the Income Tax department sleuths on Saturday continued their seizure of cash in Sudapara area of Bolangir district.
The tax department deployed about 40 large and small machines to count currency notes and brought in more department and bank staffers to finish the counting process, which began on December 6 following raids against Boudh Distilleries Private Limited and its partnership firm Baldeo Sahu and Group of Companies Ltd.
What has happened today? After recovering around Rs 225 crore till Friday, the I-T sleuths seized another 20 bagloads of cash from the house of a countrymade liquor manufacturer in Sudapara area of Bolangir district on Saturday. While total 176 bags filled with cash were brought to SBI’s Balangir branch, counting of only 40 bags have so far been completed containing cash worth Rs 46 crore. The tax department has also deployed about 40 large and small machines to count currency notes and brought in more department and bank staffers to finish the counting process, which began on December 6 following raids against Boudh Distillery Pvt Ltd and others, sources were quoted by news agency PTI.
How much money has been seized so far?
The seizure of “unaccounted” cash after the Income Tax department raids is expected to reach Rs 290 crore, I-T sources said.
More than Rs 250 crore cash has been seized till now, and cash is continuously being deposited in government bank branches in Odisha, they added. The notes are largely of the Rs 500 denomination.
This is the highest-ever cash seizure made by an agency in the country as part of an action against a single group and its linked entities, the sources said. They added that almost Rs 230 crore cash was seized from about 8-10 almirahs kept on a premises of the company in Bolangir district, while the rest from locations in Titlagarh, Sambalpur and Ranchi.
Why are the properties being raided?
The searches were launched after the Income Tax Department received “actionable intelligence” of a huge amount of “out of book” sales and cash being remitted by liquor distributors, sellers and business groups. I-T personnel first raided Boudh Distilleries Private Limited on December 6 on allegations of tax evasion, and later searched the premises of Baldeo Sahu and Group of Companies.
, from where they claim to have recovered 156 bags of cash. Subsequently, simultaneous raids were conducted in Titlagarh, Sambalpur, Sundargarh and Bhubaneswar in Odisha and in a few places in Jharkhand, said official sources. Properties linked to some liquor traders were also searched in Rourkela and Rayagada.
Who is MP Dhiraj Sahu and what has the Congress said?
According to I-T sources, Baldeo Sahu and Group of Companies Ltd, having operations across Odisha’s western districts, is allegedly linked to Congress Rajya Sabha MP from Jharkhand Dhiraj Sahu, whose family members run the business. Properties linked to Sahu were also covered as part of the searches.
Sahu has been elected to the Rajya Sabha thrice, and is also a Member, Consultative, Committee for Ministry of Power and Ministry of New and Renewable Energy. He joined politics in 1977.
After raiding manufacturing units and premises of stakeholders associated with Baldeo Sahu and Group of Companies, the tax agency is now mulling targeting offices and residences of all the persons linked to this group.
Jharkhand Congress spokesperson Rakesh Sinha said: “Dheeraj Prasad Sahu’s business is very old, and his wealth did not grow overnight… Almost all manufacturing and sale of country liquor in Odisha is owned by Dheeraj Sahu, where transactions are in cash. They are into hospitality, transport, fisheries, liquor and various other businesses. Also, as far as we know, the I-T department has not communicated anything to him.”
What has the PM Modi said about the raids?
Highlighting the raids, Prime Minister Narendra Modi had posted a newspaper clipping with photos of a large amount of currency notes allegedly recovered during the raids. Targeting the Congress, Modi wrote, “The countrymen should look at the pile of these notes and then listen to the honest ‘speeches’ of their leaders… Whatever has been looted from the public, every penny will have to be returned, this is Modi’s guarantee.”