A major financial irregularity has been uncovered in the registry offices of Uttar Pradesh, where Statement of Financial Transaction (SFT) filings were allegedly manipulated to evade income tax. A surprise inspection by the Income Tax Department at the Aligarh First Sub-Registrar office revealed that SFT reporting for registry transactions exceeding ₹30 lakh had been tampered with over several years.
Sources indicate that over 1,000 SFTs were prepared at the Aligarh First Sub-Registrar office, but only one-fourth of these reports were submitted to the Income Tax Department. Even the submitted reports contained incorrect, incomplete, or suspicious entries, highlighting a systematic scheme causing substantial revenue loss.
Officials Absent During Inspection
According to sources, when the Income Tax team arrived for inspection, senior officials excused themselves citing a meeting in Lucknow and left the responsibility to junior staff. This move sparked resentment among employees and raised allegations that the absence was deliberate to avoid scrutiny.
Following the exposure, officials assured that all SFTs would be accurately filed within 15–20 days. Investigation sources also claimed that substantial sums were offered to suppress the matter, pointing to attempts to contain the fallout.
Inspections Extended to Other Districts
After the Aligarh revelations, the Income Tax Department conducted surprise inspections in other major districts, including Agra and Meerut. These raids revealed widespread irregularities in SFT filings. In Agra and Meerut, authorities found data mismatches, incomplete entries, and suspicious reports.
Following these inspections, registry offices in Prayagraj, Kanpur, and several other districts also came under scrutiny. Continuous inspections have created chaos within the department, with employees demanding high-level investigations and strict action against responsible officials.
What is SFT and Why is it Important?
The Statement of Financial Transaction (SFT) is a critical reporting mechanism for the Income Tax Department to monitor significant financial activities. SFT reporting is mandatory for property transactions above ₹30 lakh, high-value financial dealings, and suspicious financial activities. The objective is to prevent tax evasion and enhance transparency in financial transactions. Registry offices are legally obliged to file accurate and timely SFTs, ensuring compliance with income tax regulations.
The scam and irregularities have revealed that SFT reporting was deliberately manipulated for years, causing revenue losses running into several crores of rupees.
The Aligarh case not only highlights a planned scheme to evade income tax but also exposes vulnerabilities in the financial monitoring system. Following the revelations, registry offices across the state have come under intensified scrutiny, and more districts and officials are likely to face inspections and strict action in the coming days.
Employees and affected stakeholders are demanding that the investigation be impartial and that legal action against culpable officials be expedited, aiming to prevent similar financial irregularities in the future.
