Who Played the Game? Suspicious Entries in ₹1,000 Crore Property Deals — IT Department on Alert

The Income Tax Department has detected major irregularities at the Kanpur registry office. During a survey, the Investigation Wing (INCI) found that property transactions worth nearly ₹1,000 crore contain suspicious entries — including wrong PAN numbers and incomplete information. Officials believe these lapses may have caused a significant loss of revenue to the government.

Following the survey, the department issued a notice to the registry office, directing it to submit a reply and provide all required documents within 10 days.

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How the case came to light

According to sources, the INCI team suddenly reached the office of the Sub-Registrar II on Tuesday afternoon and launched a survey that continued for nearly three hours.

The action was triggered by serious discrepancies noticed in the Statement of Financial Transactions (SFT) submitted by the registry office.

While uploading details of property deeds:

• PAN numbers were incorrect in several cases
• Many entries were incomplete
• Some transactions were not reported at all

As a result, several buyers and sellers slipped out of the Income Tax Department’s monitoring radar. The department is now tracing the correct PAN details and identities to assess the actual transactions and tax liabilities.

Wrong PAN in many deeds — records seized

During the survey, officials found that PAN numbers in multiple deeds appeared to have been entered incorrectly — either deliberately or due to negligence. Detailed explanations have been sought from the registry office.

The team seized:

• Files
• Registry records
• Entry registers

and secured them for verification during the investigation.

10 days to submit documents

Since all records were not available on the spot, the Sub-Registrar I has been given 10 days to produce the required documents.

The operation was carried out under the supervision of the Director of Income Tax (INCI), Kanpur. The team was led by Assistant Director Vimlesh Rai and Income Tax Officer Avinash Sonwani. Heavy police presence remained deployed during the action.

Irregularities found earlier as well

Interestingly, just five days earlier, the Income Tax Department conducted a similar survey at the office of Sub-Registrar I.

That survey revealed:

• Irregularities in property deeds worth ₹2,500 crore
• Over 400 suspicious PAN entries
• A directive to submit documents within 10 days

While that inquiry is still underway, the latest survey at the second registry office has raised serious questions over the functioning of the registration system.

What do the rules say?

As per rules:

• Property transactions worth ₹30 lakh or above must be reported to the Income Tax Department.
• However, during scrutiny, officials found:
• Delayed reporting
• Incomplete transaction details
• Incorrect PAN entries

All of which have been treated as serious lapses.

What happens next?

The Income Tax Department is now:

✔ Scrutinizing each deed individually
✔ Verifying correct PAN details of buyers and sellers
✔ Reassessing possible tax liabilities

If irregularities are confirmed, officials may initiate:

• Penal action
• Recovery of unpaid taxes
• Possible action against responsible officers

For now, the department is awaiting the registry office’s reply — and more revelations are likely in the coming days.