The Income Tax department has alleged that the business group linked to Congress MP Dhiraj Sahu’s family, raids against whom led to the recovery of over Rs 350 crore in cash, resorted to huge suppression of income from their liquoir business. The group, associated with Sahu’s family members, came under scrutiny after Rs 350 crore in undisclosed cash was seized from Baldeo Sahu and Group of Companies Ltd earlier this month.

In an official statement released on Thursday, the I-T department claimed that employees managing the group’s business operations admitted the seized cash represented unreported income from various business activities. This was corroborated by a family member actively engaged in the business. The department highlighted substantial income concealment related to the liquor business based on evidence unearthed during the search operation.

“The facts unearthed during the search operation indicate that the group has been indulging in huge suppression of income earned from the liquor business,” the statement read, adding that the a preliminary analysis of seized evidence reveals records of unaccounted sales of country liquor, systematic details of undisclosed cash receipts and references for movement of unaccounted cash.

The raids, conducted over about a week in Odisha, Jharkhand, and West Bengal, encompassed more than 30 locations and resulted in the confiscation of Rs 351 crore in undisclosed cash and over Rs 2.80 crore in unaccounted jewellery, the I-T department said in the statement.

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“A substantial part of the cash, to the tune of Rs. 329 crore, was unearthed and seized from obscure and dilapidated buildings, hidden chambers and hidden safe-house camouflaged as an unoccupied/nondescript residence located in small towns of Odisha including Sudapada and Titlagarh in Bolangir District and Khetrajrajpur in Sambhalpur District,” the statement read.

Although the Congress MP acknowledged that the seized money belonged to his family’s firm, he claimed it had no connection with the Congress party or any other political entity. The seizures resulted in a political controversy, with BJP leaders, including Prime Minister Narendra Modi, accusing the Congress of harbouring corruption.