In a groundbreaking operation, Income Tax officials in Jaipur have discovered an elaborate cryptocurrency network during raids on wedding planners, resulting in the seizure of over ₹20 crore in cash and jewelry, along with the freezing of three crypto wallets.
The raids, conducted across 20 premises last week, revealed that several high-end wedding planners were converting unaccounted cash from clients into cryptocurrencies, primarily USDT (Stablecoin) and Bitcoin, through hawala networks operating in Gujarat and Rajasthan.
"This is the first time we've uncovered undisclosed cryptocurrency accounts during a search operation in Rajasthan," stated a tax official. One of the frozen wallets belongs to a major international exchange, while two others are linked to local platforms.
The investigation uncovered suspicious digital data in excel sheets, WhatsApp conversations, and emails that exposed unaccounted cash transactions in weddings and events. Tax officials also discovered evidence of a complex network involving resorts, hotel owners, caterers, florists, and decorators, who offered customers flexible payment options through cash or banking channels.
The planners allegedly used dummy accounts and mule accounts for cash deposits, violating the Income Tax Act which prohibits cash transactions exceeding ₹2 lakh in a single day or for a single event. The hawala operators facilitated the conversion of Indian rupees into digital currencies, which were then transferred to private wallets.
Tax authorities noted that depositing cryptocurrencies obtained through hawala channels has become increasingly challenging due to stricter regulations. Most registered crypto exchanges now share data with the Financial Intelligence Unit under the finance ministry, making it difficult to process unauthorized crypto deposits from external wallets.
The investigation is expected to expand to wedding planners in other major cities including Hyderabad, Mumbai, and Delhi. Officials plan to conduct detailed analyses during post-search proceedings to identify all parties involved in these unaccounted transactions.