The Income Tax Department has unearthed illegal transactions to the tune of Rs 50 crore in a case involving stock market entry operators Jignesh Shah and Sanjay Shah. They had manipulated Long Term Capital Gains (LTCG) involving shares of three companies; Citizen Yarn Ltd, Safal Securities Ltd and Safal Herbs Ltd. IT sleuths have also recovered blank physical share certificates of these companies from the accused. Earlier this week, the department had seized Rs 19 crore cash from them. After the recovery of the cash, the IT department intensified its investigation. A senior official said the accused were using stocks of Citizen Yarn Ltd, Safal Securities Ltd and Safal Herbs Ltd, traded in Bombay Stock Exchange (BSE), considered penny stocks. The investigators also found stock market transactions to the tune of Rs 50 crore involving the above companies, enabled by the duo for their clients to manipulate LTCG to avoid taxes. Officials said the accused were found to have 18 bank accounts, four bank lockers and 19 dematerialized accounts as well as a host of PAN numbers. The department also seized a sizable number of blanks physical share certificates of the companies, whose shares were used to manipulate LTCG. Sanjay Shah is believed to be the mastermind behind the fake transactions. On September 11, the IT department had recovered Rs 19 crore in cash involving currency notes of Rs 2,000 and Rs 500. They had also recovered laptops, hard disks and mobile phones, which are expected to contain incriminating evidence. Officials have sent them for forensic analysis. The duo is believed to have been operating for the past six years. Both are being interrogated by IT sleuths. CRIME SHEET Sanjay Shah is believed to be the mastermind behind the fake trans-actions. On September 11, the IT department had recovered Rs 19 crore in cash involving currency notes of Rs 2,000 and Rs 500.

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