Delhi government raids a city trader, discovers ’40 times more cash’ than his declared sales


Delhi government on Thursday said it discovered a brazen case of tax fraud after its raid on a city trader discovered 40 times more cash than what he had declared in his income tax returns.

A state government statement said that after a tip-off, the officials from the department of trade and taxes put this trader, M/S RK&Co, a milkshake shop in Delhi’s Connaught Place, under surveillance.

An official from department of trade and taxes in Delhi government said,”We had credible information that this dealer was suppressing information on his sales. We decided to do the recce of his premises for two before conducting the raid and confront him. On Wednesday, our team raided his place and discovered a cash of Rs. 10,62,700 in his cash counter. As per his income tax returns filed, his reported daily sales is Rs 25,000. So, the cash amount was 40 times more than what he had stated in his income tax returns.”

The dealer in question reportedly confessed to his fraud and agreed to deposit a tax of Rs 5 lakh as penalty immediately. A comprehensive default assessment of his tax will be conducted for the last six years. Officials expect it will help them recover Rs 1.25 crore from the dealer.

The state government is describing it a major success in its efforts to check tax frauds by city’s traders. According to a 2013 data, there are around 2.80 lakh traders registered with the trade and taxes department of the Delhi government.


  1. This comes after 30% increase in VAT collection last year without changing the tax rates. Finally some hope against these tax evaders. As a tax payer, I feel happy that the Delhi govt is paving the path against tax evasion.