New Delhi, Nov 11 (IANS): The Income Tax (IT) Department on Monday said that it has busted a racket of bogus bills and hawala transactions after search operations in 42 premises across Dehi, Mumbai, Hyderabad, Pune, Agra, Goa and Tamil Nadu's Erode.

The companies involved in siphoning of funds are mostly located in the National Capital Region (NCR) and Mumbai, an IT Department statement said.

The search operations resulted in busting of a major racket of cash generation by leading corporate houses in the infrastructure sector through bogus contracts bills.

"Funds meant for public infrastructure projects were siphoned off through entry operators, lobbyists and hawala dealers. The companies involved in siphoning of funds are mostly located in NCR and Mumbai. One such company was earlier searched by Income Tax Department in April, 2019," it said.

According to the department, the projects involved in bogus billings were major infrastructure and EWS projects located in southern India.

"Evidence of cash payment of more than Rs 150 crore to a prominent person in Andhra Pradesh has also been unearthed during the search.

"Further, the search action was successful in unearthing incriminating evidences and establishing the nexus between big corporates, hawala operators and identification of entire chain of delivery, as well as siphoning of funds by way of bogus contracts to the tune of Rs 3,300 crore," the statement said.

Unexplained cash of Rs 4.19 crore and jewellery in excess of Rs 3.2 crore was also seized during the search operation.