The Income Tax Department has detected undisclosed income of more than Rs 500 crore after it recently raided a Jaipur-based group engaged in manufacturing and export of jewellery and coloured gemstones, the Central Board of Direct Taxes (CBDT) said on Wednesday.

Around 50 premises were searched by the department during the raids launched on November 23.

The tax department also seized Rs 4 crore cash and jewellery valued at Rs 9 crore during the action against the unidentified group.

“So far, detection of undisclosed income of more than Rs 500 crore has been made in the group, out of which an aggregate amount of Rs 72 crore has been admitted by the respective group entities as their undisclosed income,” the CBDT said in a statement.

 “Rough of semi-precious and precious stones is imported from African countries and the same is processed in Jaipur. The yield of cut and polished stones is suppressed and part of it is sold in cash, generating unaccounted income which is not recorded in the books of accounts,” CBDT alleged.

This unaccounted income, the statement said, is then deployed to earn interest by providing cash loans through a finance broker.

Documentary and digital evidences of disbursements of such cash loans and interest earned were seized by the tax department.

“Incriminating evidences relating to unaccounted sales and purchases, difference in stock, non-genuine unsecured loans and share application money have also been found,” it said.

The department also found documents from group entities operating from special economic zone (SEZ), indicating that they are indulging in “unfair practices” for declaring higher profits from these units as the income from these units is eligible for exemption under 10AA of the Income Tax Act (special provisions for newly established units in SEZs).