The Income Tax (I-T) department is scrutinizing extravagant Indian weddings, which often feature Bollywood celebrities and cost crores of rupees, for potential misuse of unaccounted cash. Investigations have been launched into about 20 top wedding planners in Jaipur, where authorities suspect that over Rs 7,500 crore of undisclosed funds were spent on lavish weddings in the past year.
Sources point to a network involving mule accounts, hawala agents, and fake bill generators, often linked to cities like Hyderabad and Bengaluru, supporting these high-value transactions. The tax raids, which began earlier this week, are focused on tracing cash transactions, which are estimated to make up 50-60% of the total wedding expenses.
Authorities are also investigating the money trails of foreign destination weddings, where private jets are used to fly guests and celebrities to exotic locations. Tax and FEMA expert Rajesh P Shah explained that the department compares reported wedding expenses with the scale of the event and guest lists to uncover discrepancies.
Wedding planners, especially those based in Jaipur, are under the spotlight for facilitating cash-heavy transactions. These planners often collaborate with other cities and rely on third-party operators to legitimize payments through fake billing, which allows them to claim fraudulent input tax credits.
The investigation has revealed the widespread circulation of undisclosed wealth in non-metro cities. In addition, foreign destination weddings are facing heightened scrutiny due to strict foreign exchange regulations, with banks now requiring clients to provide PAN details for all wedding guests to comply with the Reserve Bank of India’s Liberalized Remittance Scheme (LRS).
This scrutiny aligns with the government’s push for “wed-in-India” initiatives to curb foreign exchange outflow.