Income Tax Raids Target Coaching Centers in Multiple Cities
Early Thursday, the Income Tax department launched simultaneous raids on Utkarsh Classes and Edutech Pvt Ltd's coaching centers across Jodhpur, Jaipur, Delhi, Indore, and Prayagraj. These actions are part of an investigation into alleged tax evasion and black money dealings.
During the raids, students were ordered to leave their classes, and staff members had their mobile phones confiscated. The sudden nature of the operation caused panic among both students and staff. Authorities searched 16 locations in Jodhpur, including the home of Utkarsh Classes' owner, Nirmal Gehlot, in an upscale neighborhood. Raids also took place at one location each in Delhi, Jaipur, Indore, and Prayagraj.
Utkarsh Classes has been under scrutiny due to a reported Rs 800 crore deal with the well-known edtech company, Physics Wallah. The Income Tax department has gathered evidence of unaccounted transactions and underreporting of fees to avoid taxes. Additionally, the firm's aggressive real estate investments over the past few years have raised red flags.
Gehlot was reportedly planning to enter the capital market with an IPO, which may have further attracted the attention of tax authorities. The Income Tax department is also investigating individuals and businesses linked to the firm, including suppliers of computer hardware and printing services.