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Hyderabad: Pharmaceutical major Hetero stashed cash in private lockers, almirahs | Hyderabad News

HYDERABAD: The income tax department has charged pharma major Hetero with making use of private lockers in Ameerpet and those of SBI, an almirah and boxes in houses owned or rented by its directors to stash cash illegally.
Investigations found that Hetero inflated the production cost of drugs it was manufacturing and over-invoiced the raw material and other expenditures.
The tax department conducted searches at the company and premises of its directors on October 6 and found Rs 550 crore unaccounted income, including Rs 142 crore cash. The search was done at 50 locations in six states, including Andhra Pradesh and Telangana.
An official told TOI, “There are discrepancies in purchases made from bogus and non-existent entities and artificial inflation of certain heads of expenditure.” The sleuths found Rs 1.5 crore in each of the eight private lockers in Ameerpet.
Hetero is actively involved in the production of key anti-viral drug Remdesivir needed to treat Covid-19 patients. The company exports drugs to several countries too.
The tax sleuths have also been verifying data in a pen drive and other material seized during the searches. Sources said forensic analysis found huge land transactions.
According to investigation officials, the company diverted the money made from over-invoicing and converted it into cash reserves. The company directors also purchased land in various locations in Hyderabad, Vizag and other parts of the country.
Repeated attempts to reach Hetero directors didn’t bear fruit. The company exports drugs to several countries too.

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