Income-tax authorities have expanded enforcement action across Ahmedabad’s real estate sector, with multi-day searches underway at dozens of locations linked to two large property development groups. The ongoing exercise, covering offices, construction sites and associated business premises across the city and its growth corridors, signals renewed scrutiny of financial practices in a market central to Ahmedabad’s urban expansion. According to officials familiar with the matter, the searches were triggered after tax investigators received inputs suggesting that portions of residential property transactions were structured outside formal banking channels.
Preliminary checks reportedly indicated instances where buyers were encouraged to split payments between recorded transfers and unaccounted cash, prompting a comprehensive verification of books, project records and fund flows. More than 30 premises have been examined so far, including facilities linked to contractors, suppliers and intermediaries connected with the developments. Investigators have collected physical and digital records relating to land acquisitions, sales agreements and internal accounting systems. Electronic devices are being analysed to establish whether informal cash dealings were isolated cases or embedded within wider business practices. For Ahmedabad, where rapid population growth and outward expansion have driven sustained demand for housing, the probe carries implications beyond individual firms. Real estate remains a major employer and a key driver of infrastructure-led growth, but experts note that off-book transactions can distort land pricing, weaken municipal revenue streams and complicate long-term urban planning.
Industry observers say the action reflects a broader national push to curb unaccounted income in property markets, particularly in fast-growing cities where informal practices have historically coexisted with formal development. Greater compliance, they argue, is essential for aligning private investment with sustainable, transparent urban development. Urban planners point out that reliable transaction data is critical for cities aiming to invest in climate-resilient infrastructure and inclusive neighbourhoods. When property values are understated, local bodies risk underestimating service demands for water, transport and social infrastructure. This can undermine efforts to design people-first cities that balance growth with environmental responsibility.
Officials involved in the investigation indicated that bank accounts, lockers and related financial instruments linked to the groups and their principals are also under review. The findings will determine whether additional assessments or penalties follow under existing tax laws. While such searches have occurred before in Ahmedabad’s property sector, the scale and duration of the current operation underline heightened vigilance as authorities seek to formalise urban economies. For homebuyers and investors, the episode reinforces the importance of transparent transactions, while for city administrations it highlights the link between financial integrity and sustainable urban growth.
