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Tamil Nadu: I-T dept uncovers unaccounted investment of around Rs 150 crore, searches still underway

DNA logo DNA 29-10-2020 dnawebdesk@gmail.com (DNA Web Desk)
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Income tax officials have identified unaccounted investments and on-money payments to the extent of around Rs 150 crore and seized cash amounting to Rs 5 crore from ongoing searches at 22 premises in Tamil Nadu. 

The searches on the Educational institution and their associates, including a civil contractor began on Wednesday and were carried out in Coimbatore, Erode, Chennai and Namakkal. 

Given that the searches are still underway, it is expected that the final figures are going to be higher than what is being stated currently. 

According to a statement from the Income Tax department, the searches are being carried out based on information that the fees collected from students were not fully accounted for in the regular books of accounts. 

“Evidences found during the search reveal that the allegations regarding suppression of fees received are true and the unaccounted receipts are siphoned off to the personal accounts of the trustees, which in turn are invested in real estate through a company,” read the statement.

The other shareholders of the company, such as, an architect from Tiruppur and a textile businessman were also covered and electronic devices seized during the searches are being examined, said the Income tax department. 

In the case of the civil contractors from Namakkal, inflation of expenditure by booking bogus expenses under labour charges, material purchase, etc. were found. The search has led to identification of unaccounted investments and on-money payments to the extent of around Rs.150 crore. Cash amounting to Rs. 5 crore has been seized. Some lockers are yet to be operated, the statement concluded.

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