Income Tax Department’s Crackdown on Odisha Liquor Distillery Group Yields Record ₹. 290 Crore in Black Money Seizure

Odisha, December 10, 2023: The Income Tax (I-T) Department has intensified its crackdown on an Odisha-based liquor distillery group, primarily targeting Boudh Distillery Pvt Ltd and linked entities. Following raids that commenced on Wednesday across Odisha, Jharkhand, and West Bengal, sources report that the total “unaccounted” cash seizure is anticipated to reach a staggering ₹. 290 crore, marking the “highest-ever” black money haul in a single operation by any agency.

Boudh Distillery Pvt Ltd is associated with Congress Rajya Sabha MP from Jharkhand, Dheeraj Sahu, with Ritesh Sahu, the son of Dheeraj, serving as the managing director. Uday Shanker Prasad, Dheeraj’s elder brother, holds the position of chairman. The company specializes in the production of extra neutral alcohol, a crucial raw material for alcoholic beverages.

Here are the latest developments on the Odisha cash haul:

1. Expanded Raids: The Income Tax officials expanded their operations to include Baldeo Sahu & Group of Companies based in Boudh, accused of tax evasion, and also raided by the tax authorities.
2. Ongoing Counting Process: After recovering approximately ₹. 225 crore by Friday, additional cash was seized from the residence of a country-made liquor manufacturer in Bolangir district on Saturday. The counting process, utilizing about 40 machines, is expected to conclude on Saturday.
3. Currency Composition: More than ₹. 250 crore in cash has been seized, with the majority in ₹. 500 denominations. Additional cash, expected to exceed ₹. 50 crore, was retrieved from Sudapara.
4. Record-Breaking Seizure: The cumulative amount of ₹. 290 crore marks a record-breaking black money seizure in a single operation by any agency.
5. Political Reactions: The ruling Biju Janata Dal (BJD) in Odisha welcomed the tax raids, while political blame games ensued. Jharkhand BJP leaders claimed the seized money belonged to Congress leaders, and the Congress countered by suggesting BJP involvement.
6. Official Statements: Dheeraj Sahu, under whose premises raids were conducted, has not responded to calls or messages. Both Boudh Distillery Private Limited and Baldeo Sahu & Group of Companies are yet to release official statements on the matter.

The Income Tax Department has deployed additional resources, including machines and personnel, for the counting process. The ongoing recording of statements from company officials and associated individuals is expected to provide further insights into the alleged financial irregularities.