Income Tax Raids on Refex Group Expose ₹1,000 Crore Unaccounted Income

The Income Tax Department has carried out large-scale raids on the Refex Group in Chennai and other locations, uncovering unaccounted income of more than ₹1,000 crore. The searches began on 9 December and are still continuing, according to officials.

During the raids, the department seized cash, gold, and silver worth over ₹70 crore. The searches covered Refex Industries Limited, the group’s main company, and premises linked to its promoters and associates. Refex Industries is involved in refrigerant gases, coal ash handling, power trading, and solar power generation.

According to the DT Next, Officials said initial findings show serious financial irregularities. The department found evidence of fictitious purchases worth Rs. 1,112 crore related to coal procurement and ash handling. These transactions were allegedly used to show higher expenses and reduce taxable income.

The investigation also revealed that Refex Industries received Rs. 382.68 crore as equity investment from 53 individuals and entities. Many of these investors were employees or close associates of the group’s promoters. Out of the total, 15 investors have never filed income tax returns, and 37 did not report this investment in their tax filings. The department has treated the entire amount as unexplained income.

The Income Tax Department is also examining an investment of $30 million in a Swiss pharmaceutical company, Astro Viz, to check the source of funds. Another investment of Rs. 115 crore in DN Energy Ltd is alleged to have been diverted soon after the money was received.

Officials further stated that companies were created in the name of the promoter’s personal driver. Through these companies, cash deposits of Rs. 8.5 crore and transactions of more than Rs. 200 crore were routed. The promoter’s personal spending is also under scrutiny, including the purchase of a private jet, luxury cars, and expensive watches.

Separate action has been taken against a financier, Rajesh Surana, who allegedly gave loans of Rs. 312 crore to Aradhya Infra, which were then passed on to other entities. The department is examining whether these were circular transactions.

Raids on hawala operators linked to the group have also revealed illegal fund transfers of more than Rs. 10 crore, officials said. The Income Tax Department stated that the searches are ongoing and further investigation is in progress.

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