Income Tax Raids Target Desi Ghee Industry

New Delhi / Agra — The Income Tax Department carried out a massive, coordinated search operation on Thursday targeting major players in the desi ghee industry, covering 35 locations linked to five prominent manufacturers across Uttar Pradesh, Rajasthan, and Delhi. The raids began early in the morning and continued late into the night, officials said.

More than 150 officials from the department’s investigation wing were deployed, conducting simultaneous searches across factories, cold storage units, offices, and residential properties associated with the targeted groups.

Key Locations and Preliminary Findings

In Agra, searches were reported at multiple sites, including a cold storage facility on Shamsabad Road, an office on the bypass road, and residences in Kamla Nagar, Nehru Nagar, and Surya Nagar. Early reports suggest significant amounts of unaccounted cash, jewellery, and other high-value assets were detected at some promoter residences. Preliminary estimates indicate these assets could run into several crores of rupees, though the final assessment will follow completion of the search proceedings.

Officials are also scrutinising land and other immovable property investments, including potential overseas holdings, to verify declared income versus actual acquisitions.

Scope of Investigation

The five targeted desi ghee manufacturers are long-established names with strong retail and wholesale networks across north India. The Income Tax Department suspects underreporting of income over multiple years, allegedly using cash transactions and layered investments to evade taxes.

Investigators seized account books, sales registers, procurement records, and digital devices such as computers and servers for forensic analysis. The probe is part of a broader nationwide drive against tax evasion, unaccounted income, and benami assets, particularly in the FMCG and food-processing sectors, which have faced scrutiny due to cash-heavy operations and turnover discrepancies.

Industry Impact

Observers say the raids send a strong compliance signal to the food manufacturing sector, especially businesses dealing in high-volume, cash-driven consumer goods like dairy products. The operation is described as one of the largest income tax actions in recent years targeting north India’s food business ecosystem.

Officials will release details on the total cash, jewellery, and documents seized only after the search and seizure process is complete. Based on findings, further tax demands, penalties, and legal proceedings may follow.