Income Tax Raids Reveal Fraud Worth Crores Among Wedding Planners In Jaipur – News18

Last Updated:December 20, 2024, 18:28 IST

Wedding planners and event management companies are often accused of inflating prices for services like floral arrangements and catering.

In recent years, the trend of hiring wedding planners and event management companies has gained significant popularity among couples planning their big day. These agencies promise to relieve the stress of event planning, taking care of everything from venue booking to catering. However, recent investigations have revealed that not all is as rosy as it seems. Customers who rely on these services may be unknowingly falling victim to fraudulent practices, leading to massive financial losses.

A significant operation led by the Income Tax Department in Jaipur, Rajasthan, raised alarms over widespread tax evasion in the wedding industry. The department conducted raids at over 24 locations, targetting businesses and individuals involved in wedding-related services.

This includes high-profile names such as Taluka Tent House, Gunjan Singhal Wedding Planners, Bhavana Charan, Indian Wedding Planner, J Oberoi Caterers, My Bagiya, Mapsor, and the luxury wedding destination, The Gulmohar in Kukas. Locations raided include various offices and residences in prominent areas like C-Scheme, Banipark, Shyam Nagar, Tonk Road, Civil Lines, Durgapura, and Kukas.

The investigation revolved around suspicions of large-scale tax evasion, with an estimated amount running into crores of rupees. The Income Tax Department was particularly concerned about the widespread practice of underreporting earnings by manipulating payment methods in wedding transactions. In many cases, payments were split into two parts: around 40-50% which was billed officially, while the remaining 50-60% was paid in cash. This cash component, which helped avoid paying the 18% Goods and Services Tax (GST) on banquet halls and wedding venues, was a deliberate effort to evade taxes.

This illegal practice is not just limited to tax evasion. Wedding planners and event management companies are often accused of inflating prices for services like floral arrangements and catering. While the quoted prices may appear steep, the actual costs of these services are far lower. To make matters worse, some companies promise high-quality products but deliver subpar materials, leaving customers dissatisfied and financially burdened.

In addition to overcharging, some planners employ dishonest tactics, adding unexpected charges after the initial agreement is made. These hidden fees significantly increase the final bill, causing substantial financial strain on unsuspecting customers. Worse yet, a few dishonest planners collaborate with fake vendors, only to vanish with the advance payments made by clients, leaving them without the services they paid for.

One of the most alarming revelations from the recent raids was the discovery of the inflated rental prices at premium wedding venues. For instance, The Gulmohar, a luxurious wedding destination in Kukas, charged a staggering Rs 8-10 lakh for a one-day event, further highlighting the scale of financial exploitation within the industry.

As wedding planning continues to evolve into a multi-crore industry, it is crucial for consumers to be vigilant. Ensuring that wedding service providers are legitimate, transparent, and registered is essential to avoid falling prey to fraudulent schemes. Couples must also be cautious of hidden costs and pressure tactics used to inflate prices, as these can lead to significant financial losses.

Location :

Rajasthan, India