The Incomex Tax department has detected "undisclosed income" of more than Rs 300 crore after it carried out search and seizure operations on two Chennai-based Syndicate Financing groups.

The IT Department carried out the search operation on 23 September at 35 premises located in the capital city of Tamil Nadu.

"The searches, so far, have resulted in the detection of undisclosed income of more than Rs 300 crore. Unaccounted cash of Rs 9 crore has been seized so far," the Finance Ministry said in a statement on Saturday (25 September).

The evidence found in the premises of the financiers and their associates revealed that these groups have lent to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which is in cash, the ministry said.

"During the search, it was detected that they are charging high rate of interest, a part of which is not offered to tax," it said.

According to the ministry, the modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes.

Further, the unaccounted monies are disguised and brought into the books of account of the groups as unsecured loans, sundry creditors, etc, the ministry said.

Other evidence found during the course of the search revealed numerous undisclosed property investments and other income suppression by these persons, it added.