Tamil Nadu: IT Raids Across Namakkal-Based Business Group’s Coaching Centres Reveals Rs 150 Crore In Undisclosed Income

In raids on a Tamil Nadu-based business group running coaching institutes for competitive examinations, the Income Tax (I-T) Department has seized Rs 30 crore unaccounted cash.

The search and seizure operations covering 17 premises of the business group were carried out on the basis of input that the group was indulging in massive tax evasion.

"Based on preliminary findings, the undisclosed income of the group is estimated at more than Rs 150 crore. The search is still in progress," the I-T Department said ina statement.

As per the I-T Department, the coaching centres suppressed fee receipts received from students. The modus operandi was to receive part of fees in cash and such receipts were invariably not entered in the regular book of accounts.

"Instead, such receipts were maintained in separate set of accounts. Incriminating evidence of such suppressing of receipts has been found during the search in the form of accounts maintained in diaries, in electronic storage devices and also in the form of huge sums of unaccounted cash," it said.

Cash was kept in bank lockers in the names of employees who acted as benami or name lenders.

The Namakkal, TN-based business group under scanner, comprises several partnership firms and a trust controlled by a closely knit group of individuals.

The I-T Department press note said significant amount of cash was found in a safe inside an auditorium in the main school premises. Further, unaccounted cash of Rs 30 crore has been found and seized.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)