New Delhi, Dec 29 (IANS): The Income Tax Department on Wednesday carried out searches at 35 locations connected to two prominent business groups of Raipur and Korba in Chhattisgarh and seized cash and jewellery worth Rs 3 crore.

According to officials, these private firms that deal with iron and steel products, coal washery and transportation, were concealing unaccounted cash of over Rs 200 crore.

The searches covered more than 35 premises spread over Raipur, Korba, Bilaspur and Raigarh districts of Chhattisgarh.

Various incriminating documents and digital evidence including a parallel set of cash books were found, in one of the firms.

The preliminary analysis of these parallel set of cash books revealed that it contained a systematic record of unaccounted transactions of over Rs 200 crore.

Evidence collected also suggests that certain entities of this group were indulging in suppression of actual production and subsequent unaccounted sales made in cash, which were not recorded in the regular account books.

In the case of one such entity, a parallel set of records of transactions of around Rs 50 crore were recovered which were not reflected in the regular accounts books.

"The search team has also found that this group is evading their taxable income by obtaining bogus purchase invoices from related group entities engaged in transportation as well as from entry providers," an official said.

He added that the other group also indulged in various malpractices.

"It was being done to evade taxes on its income by resorting to obtaining of share capital with unsubstantiated share premium and claim of expenses on bogus purchases. The key person of this group has admitted an undisclosed income of Rs 20 crore," he said.