Cobrapost Alleges Kamla Pasand Promoters Routed Rs 2,547 Crore Through Fake Diamond Sales

A Cobrapost investigation has alleged that eight members of the Chaurasia family, promoters of the Kamla Pasand Group, routed Rs 2,547.49 crore of alleged unaccounted cash into the banking system by claiming it originated from the sale of diamonds that investigators concluded never existed.

The report is based on its analysis of orders passed under the Prevention of Benami Property Transactions Act (PBPTA) and income tax proceedings.

According to the investigation, the family declared possession of rough diamonds under the Income Declaration Scheme (IDS), 2016, and later claimed long-term capital gains on their purported sale between assessment years 2017-18 and 2021-22.

The report alleges that tax authorities found no evidence that the diamonds ever existed and concluded that the transactions legitimised unaccounted cash. It further alleges that hawala operators and intermediary entities channelled the funds into bank accounts.

The investigation further claims that the PBPTA Adjudicating Authority attached movable and immovable assets acquired through the alleged transactions.

The SAFEMA Appellate Tribunal later set aside those attachment orders, holding that the properties could not be treated as benami.

Cobrapost noted that authorities had not challenged the tribunal’s decision before the High Court at the time of publication. It also stated that proceedings before the Income Tax Appellate Tribunal (ITAT) remain pending.

The report additionally refers to earlier searches conducted by tax authorities, alleging evidence of undisclosed sales, tax evasion and the use of proxy corporate entities linked to the group’s business operations.

The allegations reported by Cobrapost are based on investigative documents and tribunal records cited in its report, and the article notes that related legal proceedings are continuing.

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