Karnataka: IT Department Conducts Searches At Embassy Group, A Real Estate Firm Closely Linked To Former Congress Minister K.J George

The Income Tax department on Wednesday (Jun 1) conducted extensive search operations at several premises belonging to real estate major Embassy Group on suspected tax evasion.

Headquartered in Bengaluru, the privately-held group has various business verticals spawning commercial and residential real estate, hospitality, industrial warehouse spaces, services, retail and education.

The IT department reportedly launched searched 50 locations of the realty group in Bengaluru, Mumbai and Gurugram.

The premises of the company’s chairman and managing director, Jitu Virwani, and the premises and residence of director, Narpat Singh Choraria, were among those searched.

Embassy Group has close business links with former state Home Minister and senior Congress leader K.J George. The real estate group and Kelachandra Group, the family firm of the minister are partners in Embassy Golf Links.

In a press release, Embassy group termed the search operation a “routine income tax inquiry”.

“Embassy Group has always acted and will continue to act in accordance with the provisions of all applicable laws and regulations while maintaining the highest standards of corporate governance. We have extended our complete compliance to the relevant authorities. We would like to assure our stakeholders that business continues as usual,” the group's statement said.

While Income Tax department did not release any official communication on the operations, The Economic Times quoting IT officials reported that the raids are connected with suspected irregularities in REIT floated by the group and particular issues concerning capital gain tax.

Embassy REIT owns and operates a 42.8 million square feet portfolio of eight infrastructure-like office parks and four city-center office buildings in Bangalore, Mumbai, Pune, and the National Capital Region (NCR).