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The Income Tax Department is carrying out a search and seizure operation on a firm of real estate builders & developers based in Gujarat's Rajkot, an official statement said on Friday.

The group is among Gujarat's prominent and is actively engaged in real estate, construction, and land trading businesses in and around Rajkot. More than 40 premises were covered in the operation.

During the course of search and seizure operation, many incriminating documents, loose sheets, digital evidence etc were seized, indicating involvement of the group in unaccounted transactions. Substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash, has been found by the I-T Department.

Evidence of money payments in real estate projects - flats, shops and land deals - has also been found. Total unaccounted cash receipts in various projects of approximately Rs 350 crore have been unearthed along with corroborative evidences.

The Department said that evidence related to land purchase of approximately Rs 154 crore, out of which Rs 144 crore was purportedly paid in cash, has also been found.

Overall, the search and seizure operation has resulted in detection of concealment of income in excess of Rs 300 crore spread over various assessment years, and this is likely to go up. Unaccounted cash of more than Rs 6.40 crore and jewellery amounting to Rs 1.70 crore has been seized from different premises.

Furthermore, promissory notes to the tune of Rs 4 crore have also been found and seized, while 25 lockers have been found during the course of the search operation which have been put under prohibitory orders. The search operation is still continuing.