Tamil Nadu: Income Tax Dept Uncovers Rs 250 Cr In Raids On Chit Fund Groups & Saree Vendor

The raids were conducted in 34 locations across Tamil Nadu including in Chennai, Kanchipuram and Vellore districts. 

Cash seized during Income Tax raids (Image For Representation)

Chennai: The Income Tax Department uncovered unaccounted money and gold worth Rs 250 crore during raids held at several locations belonging to a chit fund financer and a silk saree vendor on Sunday. The raids were conducted in 34 locations across Tamil Nadu including in Chennai, Kanchipuram, and Vellore districts. 

In a report on Live Mint, a communication from the Central Board of Direct Taxes (CBDT) said the unaccounted income of Rs 250 crore has been uncovered.

In the raids at the chit fund company, the Income Tax Department found that the group was running the chit fund business without any authorisations and conducted searches in the properties belonging to the company. The raids revealed that the last tractions and investments to the tune of Rs 400 crore was completely done in cash. The evidence also revealed that unaccounted income was earned by the firm in the form of commission and dividends.

The CBDT said, the Income Tax sleuths seized signed post-dated cheques, promissory notes and power of attorney documents kept by the chit fund subscribers as collateral for the loan. The sleuths also found that the company earned huge unaccounted income from cash financing and unaccounted investments. 

The Department also found that the group owned farms houses, luxury homes, and luxury vehicles even in the name of the group members and associates. They uncovered undisclosed income or Rs 150 crore in the form of cash and 7.5 kg gold jewellery. 

In the raids conducted at the place of silk saree retailer, the IT department found that the sales figures were manipulated through a customised software in the past four years. The group took large amounts of unaccounted cash and made investments in land, buildings and chit funds. They seized unaccounted cash of Rs 44 lakh and 9.5 kg of gold jewellery and the undisclosed income was found to the tune of Rs 100 crore.  

However, the Income Tax Department did not reveal the name of the two firms.