Maharashtra: IT Department raids multiple locations linked to Ramee Group of Hotels in Pune

Representational Image. File Pic

The Income Tax Department on Tuesday launched a series of raids at multiple locations linked to the Ramee Group of Hotels. The group is a well-known hospitality chain that operates popular establishments, including Bombay Adda.

As per the reports, the action is part of an ongoing investigation into suspected financial irregularities.

Raids were carried out at several premises of the Ramee Group of Hotels, including the Ramee Grand Hotel on Apte Road in Pune. The hotel witnessed police deployment around the property to maintain order during the raids.

While the department has not yet issued an official statement on the findings or the scale of the operation, anything about the ongoing raid by the Income Tax department cannot be established.

More details are awaited as the investigation progresses by the Income Tax Department.

ED probes Rs 40-crore IPO fraud in Mumbai

Earlier on November 4, the Enforcement Directorate (ED) reportedly conducted search operations at multiple locations across Mumbai in connection with its ongoing investigation against M/s Varanium Cloud Ltd., its promoter Harshavardhan Sabale, and other associated entities.

The ED's Headquarters Investigation Unit in New Delhi carried out the searches based on credible intelligence indicating large-scale manipulation of financial records, circular fund movements, and suspected laundering of proceeds of crime, they said.

According to officials from the investigation agencies, Varanium Cloud Ltd and its group companies allegedly raised around Rs 40 crore through an Initial Public Offering (IPO) in September 2022, claiming the funds would be used to set up edge data centres and digital learning hubs in smaller towns.

The officials further added that the company had projected itself as a fast-growing technology firm in digital media, blockchain, and EdTech, and had allegedly used the names of reputed business groups and media outlets to attract investors.

However, the agency further claimed that the promised projects were never executed and that the IPO proceeds were diverted through fictitious transactions and circular fund movements to artificially inflate turnover and market value. The ED had also stated that subsequent trading patterns reflected artificial price escalation followed by heavy offloading of shares - consistent with a "pump-and-dump" scheme - allegedly causing losses to genuine investors.