Inside India’s Legendary Tax Raid that Inspired Ajay Devgn’s "Raid" Movie

Introduction

On the morning of July 16, 1981, India witnessed one of the most significant income tax raids in its history. The target was none other than Sardar Inder Singh, a pioneering industrialist and former Rajya Sabha MP, well-known for establishing India’s first steel re-rolling mill and North India’s largest railway wagon factory.

This meticulously planned and colossal operation not only uncovered an astonishing treasure trove of hidden wealth but also became the real-life inspiration behind Ajay Devgn’s blockbuster Bollywood hit, “Raid.”

The Man Behind the Empire

Sardar Inder Singh was a towering figure in India’s industrial landscape. Beginning his entrepreneurial journey in the early 20th century, he laid the foundation of several industrial units, transforming Kanpur into a hub for steel re-rolling and wagon manufacturing. His business empire spanned factories, estates, and bank lockers across multiple cities including Kanpur, Delhi, and Mussoorie. Besides his industrial pursuits, Singh was also a respected politician, serving as an MLA and later as a Rajya Sabha member.

The Tip-Off and the Raid Begins

The groundwork for this historic raid began long before dawn on July 16. A vast team of over 90 Income Tax officers, backed by 200 policemen and clerical staff, mobilized under the leadership of Deputy Director (Intelligence) Alak Kumar Batbyal. The operation was intensely coordinated, with simultaneous raids planned on Singh’s residences in Kanpur’s Swaroop Nagar, the homes of family members in upscale colonies like Tilak Nagar and Lajpat Nagar, and the factories of Singh Engineering Works in Fazal Ganj and Panki.

The raid caught the family off guard, signaling the arrival of an unrelenting crackdown. It was supposed to be a routine search but soon evolved into a prolonged siege that lasted three nights and two days of a marathon exercise in uncovering hidden assets.

The Astonishing Haul

As the officers scoured every nook and cranny, they uncovered staggering amounts of concealed wealth. More than Rs 1.60 crore in cash was seized, a jaw-dropping sum for the time. Alongside the cash, authorities found 750 tola of gold, including two hefty gold bricks weighing 500 tola each, valuable jewelry worth approximately Rs 8 lakh, and 144 gold coins (“guineas”) valued at Rs 1.85 lakh.

The gold control laws of the time were flagrantly violated, with large quantities of gold hidden within the family’s residences. Singh’s wife, Mohinder Kaur’s home revealed major portions of this treasure, further complicating the raid as it extended to include multiple family members.

The Herculean Counting Effort

The sheer volume of recovered cash necessitated extraordinary measures. The local Reserve Bank of India (RBI) was roped in to assist with the counting, involving 45 individuals including officers and clerks. The team spent an intense 18 hours tallying the money, working round the clock in a special room set aside just for this purpose. The operation was so massive that RBI’s cash vans and armed security personnel were required to safely transport the cash haul.

A Raid That Shook the Nation

The raid didn’t just seize wealth; it sent shockwaves through India’s corridors of power and society at large. It was one of the lengthiest, most comprehensive tax raids ever carried out. Over the course of nearly a month, officials conducted searches of 15 bank lockers under various names across Kanpur, Delhi, and Mussoorie, with notifications issued against Sardar Inder Singh, his wife, four sons, two sons-in-law, and other relatives.

The raid exposed a hidden world of undeclared assets and black money, raising urgent questions about corruption, tax evasion, and accountability among India’s elite. The unprecedented scale and drama surrounding the raid captured media and public imagination, highlighting the courage and determination of the Income Tax Department officials in their pursuit of justice.

The Legal Fallout

Following the raid, legal notices were served against Singh and his family. The Gold (Control) Act of 1968 became a key piece of legislation used by the authorities, especially against Mohinder Kaur for the illegal possession of gold. The family’s reputation suffered a critical blow, and the case became a defining moment in India’s ongoing battle against black money.

Inspiring a Bollywood Blockbuster

This legendary raid served as the foundation for the 2018 Bollywood movie “Raid,” starring Ajay Devgn as the tough, upright Income Tax officer who dares to take on a powerful politician and businessman hiding massive wealth. While the film dramatizes several aspects, its core narrative relentless pursuit of justice against deep-rooted corruption is a faithful homage to the real-life operation.

“Raid” brought this monumental episode back into public memory, shining a cinematic spotlight on the grit and integrity of Indian tax officers. It amplified the importance of institutional vigilance in curbing tax evasion and underscored the sacrifices made by public servants in standing up to entrenched power.

Legacy and Lessons

The 1981 raid on Sardar Inder Singh’s properties remains a landmark case in India’s tax enforcement history. It stands as a reminder of the challenges faced in tackling black money and the lengths to which authorities must go to uphold the law.

For today’s tax professionals, policymakers, and citizens, the raid underscores the critical importance of transparency, compliance, and the rule of law. It also highlights the evolving techniques of the Income Tax Department in probing intricate webs of concealed assets; a battle that continues in different forms today.

Conclusion

The raid on Sardar Inder Singh’s empire was not merely a law enforcement operation; it was a bold statement against corruption and tax evasion at the highest levels. The massive haul of gold and cash, the prolonged siege, and the unwavering dedication of the officers involved make it a defining moment in India’s fight against black money.

Through “Raid,” this storied chapter received a tribute befitting its scale and significance, inspiring many and reminding all of the power of truth and justice. As India continues to strengthen its tax administration and clamp down on illicit wealth, the legacy of this raid remains a beacon of courage and accountability, integral to the nation’s journey toward financial integrity.