The searches, which began from August 5 and still in progress, are being conducted with the assistance of over 150 officers and staff of the Income-Tax department drawn from various directorates at Kolhapur and Thane along with the Pune unit with active assistance from the Pune police.

The searched assessee was reportedly managing the untaxed or black money of leading businessmen of the city by investing it in money lending business at astronomical rates of interest. The modus operandi, according to the directorate, was to collect post-dated or blank signed cheques from the persons to whom loans are given, deduct the interest before hand and remit the balance. Such post-dated cheques are returned after the loan amount is received in cash.

During the operations, more than 5,000 post-dated blank signed cheques have been recovered. Enquiries into other businessmen receiving the loan in the form of unaccounted money are being carried out. A cash of Rs 2.92 crore was found in the ante-room, used as a dressing room by the assessee, during the search. The cash was found in various carry-bags, kit-bags and suitcases. The assessee also owned another flat which was not known to be used since 1984. However a cash of Rs 70 lakh was recovered from a cupboard in this flat. The total cash seized from the residential and business premises of the assessee amounted to Rs 5.3 crore.

Surveillance of a lady employee working with the assessee resulted in a search at her residence from where National Savings Certificates worth Rs 2.6 crore were recovered. A seizure of 15 kg gold in the form of gold bullion was also made, the directorate said.

The Kalyan unit of the directorate in its search at the office and residential premises of a prominent family in Thane and assets worth Rs 45.14 lakh were seized. The Nashik unit in its search at the office and residential premises of a group of traders from Satana, Deola and Kalwan talukas of Nashik district unearthed undisclosed assets of Rs 3.36 crore. The Nagpur unit in its search of a leading wholesaler of lottery tickets seized valuables and cash of Rs 84 lakh.