I-T raids at Dainik Bhaskar offices, tax evasion in name of shell cos; names of owners figured in Panama papers probe

New Delhi: A Hindi national daily Dainik Bhaskar group has come under the scanner of Income Tax department for alleged tax evasions and financial irregularities.

According to reports, 32 premises, consisting of residential and business premises spread over the cities of Mumbai, Delhi, Bhopal, Indore, Jaipur, Korba, Noida, and Ahmedabad are being searched. Searches have been carried out after analysis of the departmental database, “banking enquiries and other discrete enquiries”.

The newspaper is published under the aegis of its flagship company DB Corp Ltd. The group is involved in various sectors, major being media, power, textiles and real estate, with a group turnover of more than Rs 6000 crore per annum. The group has more than 100 companies including holding and subsidiary companies.

‘Tax evasion by means of shell companies’

Government sources said there are allegations of huge tax evasion by the group “by claiming bogus expenses and purchases using shell entities”.
The sources said the group has allegedly floated several paper companies for this purpose, with their employees as shareholders and directors.

They said the money “siphoned off in this manner” is routed back into various personal and business investments, in the form of “share premium and foreign investments through Mauritius-based entities.

The main persons of the group are the three brothers – Sudhir Agarwal, Pawan Agarwal and Girish Agarwal.

The coal-based power generation business is carried in the name of DB Power Limited. The sources said family members’ names also figured in the Panama leaks case.