Gujarat : IT Department’s Mega Raid in Morbi Exposes Rs 250 Crore Benami Accounts

Morbi/Rajkot | Gujarat — In what is being termed as the biggest tax evasion exposure of the year, the Income Tax Department’s mega search operation on the well-known Lavish and Metro Ceramic Group in Morbi has shaken the industrial world of Saurashtra. The ongoing raid has so far led to the seizure of Rs 11 crore in unaccounted cash and Rs 5 crore worth of jewellery, while investigators have also unearthed benami accounts valued at over Rs 250 crore.

“This operation has sent shockwaves through Gujarat’s ceramic industry. The scale of unaccounted wealth discovered so far is unprecedented,” said a senior IT official on condition of anonymity.

250 Officers in Action, 40 Locations Raided

Under the leadership of the Joint Commissioner of the Rajkot Investigation Wing, nearly 250 Income Tax officers, backed by a technical team and police convoy, launched simultaneous raids at 40 locations linked to Lavish, Levia, Metro, Modern, and Edenhill ceramic groups. Notably, 30 of these premises were the residences of the owners and partners, highlighting the personal scale of wealth hoarding.

On the very first day, IT sleuths seized Rs 3 crore in unaccounted cash from the Rajkot residence of a partner. As the operation progressed, the tally rose sharply, reaching Rs 11 crore in cash and Rs 5 crore in gold and jewellery by the second day.

Top Ceramic Industrialists Under Scanner

The crackdown has also brought top industry figures into the spotlight. Former Ceramic Association president Rajubhai Dhamasana, along with partners Dhirubhai Rojmala and Jitubhai Rojmala, are among those under investigation. Their accountants too are reportedly being probed for their role in managing benami accounts and concealing profits.

Rs 250 Crore Benami Accounts Found

According to IT sources, the group was allegedly suppressing profits from tile production to evade taxes on a massive scale. The Department had been quietly investigating their financial activities for five months before moving in with this full-scale operation.

“Preliminary findings show benami transactions exceeding Rs 250 crore. This could increase further once digital data analysis is completed,” an official revealed.

Digital Data Could Widen Probe

A major focus of the investigation is the group’s digital records. Laptops, servers, and storage devices seized during the raid are being scrutinized. Officials believe these may provide deeper insights into layered transactions and hidden financial trails.

“The real story will unfold once digital evidence is decoded. That’s where the actual scale of tax evasion will come to light,” said a source close to the probe.

Panic in Saurashtra’s Business Circles

The raids are nearing completion, with on-ground searches expected to conclude by Friday. However, verification of seized digital data and documents will continue. The operation has also extended to two Angadiya firms in Morbi.