The Income Tax Department has taken major action against Lulu Mall, Lucknow, freezing the company’s bank account over alleged non-payment of nearly ₹27 crore in income tax. Officials said the step was taken after the dues were not cleared despite earlier notices.
According to department sources, during scrutiny of documents related to tax liabilities and financial transactions, several discrepancies were detected, indicating possible evasion. Based on these findings, the department proceeded under legal provisions and directed the bank to restrict operations on the account.
Notices sent, but payment not made
Officials said reminders and statutory notices were issued to the company, seeking payment of outstanding tax within the stipulated period. However, the amount remained unpaid.
“After due process and adequate time, freezing the bank account became necessary to secure government revenue,” an officer familiar with the case said.
The account will remain frozen until further orders or settlement of dues.
Records examined, red flags reported
During investigation, officials examined purchase and sales records, tax filings, ledger entries and transaction details. Some entries reportedly did not match with declared income, triggering deeper scrutiny.
Sources said certain transactions routed through multiple entities are also under review. However, the department has not officially commented, as the probe is still in progress.
Wider crackdown on tax evasion
In recent weeks, tax agencies across Uttar Pradesh have intensified action against suspected evasion — from jewellery and textile traders to large business groups. Several raids have resulted in seizures of cash, jewellery, documents and detection of undeclared assets.
Officials say the objective is to ensure stricter compliance and transparency.
What next?
Lulu Mall may challenge the order or seek relief through legal channels, including instalment-based payment options, if permitted by authorities. But unless relief is granted, recovery proceedings may continue.
For now, the action sends a clear message:
failure to clear dues despite notices can lead to strict enforcement.
