The Income Tax Department’s action against groups linked to the ghee and dairy products trade continued for the second consecutive day on Saturday, with officials seizing gold, silver and diamond jewellery valued at over ₹20 crore from a single location belonging to a major dairy group. Large volumes of cash and business records were also recovered from multiple premises as the investigation widened.
According to sources, the two-day operation has covered several firms involved in the manufacture and distribution of ghee and other milk-based products. Officials have begun valuation of the seized jewellery, while scrutiny of materials recovered from other locations is still underway. Final figures are expected to emerge only after the completion of the searches.
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Income tax teams are examining account books alongside electronic and logistical data to verify the authenticity of transactions. Records are being cross-checked with e-way bills, toll plaza movement data and CCTV footage installed at residential and commercial premises to establish the actual scale of business operations and the flow of goods.
The investigation has expanded beyond manufacturing units to include distribution networks operating across multiple cities. Documents recovered during searches suggest possible irregularities in supply chains and discrepancies between declared income and actual turnover. In several cases, officials have reportedly found gaps between paper records and on-ground production and sales activity.
Sources indicated that cash recoveries have been made from several locations, though consolidated figures will be available only after the raids conclude. The department has so far refrained from issuing any formal statement, maintaining confidentiality as the searches are still in progress. Digital data and documents seized during the operation are also being subjected to forensic examination to trace income sources and expenditure patterns.
Evidence related to the alleged manufacture and supply of adulterated ghee has also surfaced during the searches, according to officials familiar with the matter. Departments responsible for food safety have been informally alerted, though any regulatory action will follow only after the income tax investigation is completed and formal communication is issued. Authorities concerned are monitoring developments closely.
Simultaneous search operations are underway at 35 locations spread across Uttar Pradesh, Rajasthan and the National Capital Region, among other areas. The premises being searched include corporate offices, warehouses, factories and residential properties. The scope of the probe includes unaccounted income, suspected benami assets and potential overseas investments linked to the business groups under scrutiny.
The raids triggered considerable activity at the locations involved, with teams spending several hours counting currency and preparing detailed inventories of seized valuables. Officials were seen meticulously documenting each item recovered to ensure accurate assessment of tax liability at a later stage.
Sources said detailed inventories of the seized assets are being prepared, which will form the basis for further proceedings, including tax assessments and potential penalties. Any additional action will depend on the outcome of the ongoing verification process.
Officials indicated that conclusions will be drawn only after the searches are formally concluded and all seized materials are thoroughly examined. For now, operations remain ongoing across all identified locations, with further disclosures likely as the investigation progresses.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
