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The Income Tax Department on Thursday carried out a large, coordinated search operation against prominent players in the desi ghee industry, covering 35 locations linked to five well-known manufacturers in Uttar Pradesh, Rajasthan and Delhi. The action began early in the morning, shortly before 7 am, and continued late into the night, officials said.
Sources said the operation involved multiple teams from the department’s investigation wing, with more than 150 officials deployed simultaneously. Business premises, factories, cold storage units, offices and residential properties associated with the targeted groups were searched as part of the exercise.
In Agra, activity was reported from several locations, including a cold storage facility on Shamsabad Road, an office on the bypass road, and residential properties in areas such as Kamla Nagar, Nehru Nagar and Surya Nagar. Officials were seen entering and exiting premises throughout the day as documents, digital records and transaction-related material were examined. At some locations, searches continued well past midnight.
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Preliminary inputs suggest that large amounts of unaccounted cash may have been detected at the residences of promoter families linked to one of the major desi ghee manufacturing groups based in Agra. Substantial quantities of jewellery and other high-value assets are also said to have come under scrutiny. While early estimates indicate that the value of these assets could run into several crores of rupees, officials cautioned that the final assessment will only be possible after the search proceedings are formally concluded.
Investigators are also examining extensive investments made by the groups in land and other immovable properties. The focus of the inquiry is on verifying the sources of these investments and matching them with declared income. According to sources, the probe is not limited to domestic holdings alone, with possible overseas assets also being examined as part of the investigation.
The five desi ghee manufacturers under the scanner are long-established names in north India, with operations spanning multiple states. Their products have a strong presence in both retail and wholesale markets, supplying to a wide consumer base. The Income Tax Department suspects that some of these groups may have underreported income over several years, allegedly using cash transactions and layered investments to evade taxes.
As part of the search, officials are scrutinising account books, sales registers, procurement records and details of cash dealings. Digital devices, including computers and servers, have been seized from several premises and sent for forensic analysis to trace undisclosed income and potential benami transactions.
According to departmental sources, the action is part of a broader nationwide drive against tax evasion, unaccounted income and benami assets. The food processing and fast-moving consumer goods (FMCG) sectors have been under increased watch in recent months following intelligence inputs pointing to widespread use of cash transactions and discrepancies between reported turnover and actual market activity.
Despite the scale of the operation, the Income Tax Department has not issued any official statement so far. Officials indicated that details regarding the quantum of cash, jewellery and documents seized will be disclosed only after the completion of the search and seizure process. Based on the findings, further tax demands, penalties and legal proceedings may follow against the entities and individuals concerned.
Industry observers say the raids have sent a strong signal to the food manufacturing sector, particularly businesses dealing in high-volume consumer goods such as dairy products. The desi ghee industry, which largely operates in price-sensitive markets and often relies on cash-heavy supply chains, has faced allegations of underreporting and opaque accounting practices in the past.
The operation is being described as one of the most extensive income tax actions in recent years targeting the north Indian food business ecosystem. As investigators continue to analyse the material seized, the findings are expected to have wider implications for compliance practices within the sector.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
