Mineweb reported that the Mumbai and Surat offices of India’s income tax department have been conducting joint raids on diamond firms in both areas since last week, hoping to follow up on the discovery of “bogus documents.” In the past, such documents have been created to “gain access to loans and, to an extent, evade taxes.”
As quoted in the market news:
More than 70 Income Tax officials have carried out searches in the houses and offices of leading diamond traders in Mumbai. In the island city, the raids were carried out at Opera House, Panchratna Building and Prasad Chambers, which is normally a beehive of activity for the diamond trade.
Work at the diamond bourse in Mumbai came to a standstill on Monday, with Income Tax officials going through the books and documents.