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In a sweeping move that has sent shockwaves through the real estate sector in Noida and Greater Noida, the Income Tax Department conducted an intensive search operation on the properties connected to a prominent real estate developer over the weekend. Officials from the North Western Region of the Income Tax Department spearheaded the operation, focusing their attention on the premises of Orris Group and its affiliated companies.
The tax authorities had already mounted similar searches the previous Friday, targeting the group's locations in Noida, Greater Noida, and Gurugram, as they escalated their efforts to uncover potential tax irregularities within the Delhi-NCR real estate landscape.
At the heart of the investigation lies the Orris Group, a name synonymous with numerous real estate ventures, including the ambitious Green Bay Golf Village project, which was initiated in Sector 22D of the Yamuna Expressway Authority in 2011. However, what makes this case particularly noteworthy is the staggering revelation that, as of February 28 this year, the Orris Group had accrued unpaid dues amounting to a jaw-dropping Rs 761.99 crore owed to the Yamuna Expressway Authority. This makes them the single largest defaulter in the group housing category, a fact confirmed by a local official familiar with the matter.
The Orris Group's troubles did not begin with the recent income tax raids. In June 2018, the real estate developer found itself embroiled in a legal quagmire when the Noida Police registered a First Information Report (FIR) against one of its subsidiaries, Greenbay Infrastructure. The charges included allegations of cheating and forgery of documents, stemming from irregularities detected during an audit conducted by the Yamuna Expressway Authority. Adding to their legal woes, three months later, the group's chairman, Vijay Gupta, along with several associates, faced a case linked to the same project. These developments were detailed within the FIR and were subsequently investigated by the Delhi Police's Economic Offences Wing.
These ongoing developments underscore the government's unwavering commitment to cracking down on tax evasion within the real estate sector, a critical source of revenue for the Indian economy. The Income Tax Department's recent series of raids and investigations demonstrate their dedication to ensuring transparency, accountability, and adherence to tax regulations within this vital industry.
The repercussions of these events are expected to reverberate throughout the real estate sector, potentially serving as a wake-up call to other developers who may have taken a lax approach to their tax obligations. As the investigations unfold, stakeholders and industry observers will be closely watching for further developments, as the government's clampdown on tax evasion within the real estate sector continues to unfold.
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