THE JHARKHAND STORY NETWORK
Ranchi, February 27: The Income Tax Department’s three-day raid in connection with the DMFT scam concluded late last night, with officials detecting irregularities amounting to over ₹400 crore. Investigators also found that several listed suppliers were operating from fake addresses.
Raids Conducted at 15 Locations
The department began simultaneous searches on February 24 at the premises of 15 suppliers allegedly linked to material procurement under the District Mineral Foundation Trust (DMFT).
However, officials discovered that the addresses of several suppliers were fictitious. Even after questioning residents, no information about the firms or their operators could be obtained.
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As the suppliers were not found at the listed locations, authorities suspect them to be shell entities. Investigators believe a larger conspiracy may have been involved, wherein establishments were set up using fake addresses, materials were shown as supplied, payments were received, and the funds were subsequently withdrawn and distributed.
Search operations are ongoing to trace these alleged paper suppliers and to ascertain whether influential individuals were involved in the scam.
Materials Supplied at Inflated Prices
During the raids, documents relating to financial irregularities exceeding ₹400 crore were seized. Officials found instances where materials were reportedly supplied at prices ranging from five to 25 times the prevailing market rate.
Investigators also found that some of the materials shown as supplied to DMFT could not be physically traced. In several cases, suppliers failed to provide complete documentation or details of the materials supplied.
