(MENAFN- NewsBytes)
Sahara's Aamby Valley slapped with Rs. 24,646cr tax demand notice
25 Apr 2017
The Income Tax Department has slapped a Rs. 24,646-cr tax demand notice on Sahara Group's flagship project Aamby Valley Limited (AVL) which is worth Rs. 39,000cr.
The notice stated that AVL had "concealed the particulars of income or furnished inaccurate particulars of such income".
The notice served in January 2017 pertained to the assessment year 2012-13.
Sahara's ultra-luxurious Aamby Valley City in Pune
Fact
AVL is a 10,000-acre hilltop city in Pune near Lonavala, designed by the Sahara Pariwar. Residents can enjoy a game on the Asian Tour golf tournament venue located inside, or go speed-boating or jet skiing on the private artificial lakes. AVL also has an airport.
What malpractices did I-T find?
Investigation
During its four-year investigation, I-T found that AVLs' eight special vehicles (SPVs) and subsidiaries had accrued huge income (Rs. 27,000cr in excess) to the company, which instead projected losses of Rs. 14.86cr.
In fact, AVL had breached rules in 29 separate financial matters, I-T found.
It then raised AVL's income to Rs. 48,085.79cr "with a total I-T demand of Rs 24,646.96cr", a spokesman said.
Appeal to I-T's debt resolution panel didn't help AVL
Appeal
AVL had appealed to I-T's Debt Resolution Panel against a March'16 I-T assessment that had added Rs. 27,549cr to AVL's income.
However, the tribunal found that AVL reserves had increased by Rs. 46,999cr. A subsidiary, AVDCL, was also found to be worth over Rs. 36,800cr.
The tribunal then added another Rs. 48,085.79cr to AVL's returned income, with a total tax demand of Rs. 24,646cr.
Finding potential buyers for AVL gets even harder for Sahara
Fact
The findings added to Sahara's woes: the SC had already ordered AVL's auction after Sahara failed to deposit Rs. 5,092.64cr as bail for boss Subrata Roy. Few investors would be willing to touch a property facing I-T action, making it harder to find potential buyers.
SC approves auction of Sahara's Rs. 40,000cr Aamby Valley complex
26 Jul 2017
The SC approved a global auction of Sahara's Aamby Valley complex worth Rs. 40,000cr.
On opposition by senior advocate Kapil Sibal, the SC gave Sahara till September 7 to deposit Rs. 1,500cr; from its last order demanding Rs. 552cr by July 15, Sahara has paid only Rs. 247cr.
It will consider halting the auction only when the entire amount was paid, it said.
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