KOCHI: After receiving evidence that the Central government fund provided to Nagaland government was transferred to MKR Pillai-owned Sreevalsam group, a team of Income Tax (IT) department, Kerala carrying out a probe against MKR Pillai carried out raids at various places in Nagaland. The IT officials received the evidence group after a few politicians and bureaucrats came under the IT scanner.
The IT team comprising officials from Ernakulam and Kollam reached Kohima on Monday and the team returned to Kerala on Thursday.
Official investigating sources estimated that they could unearth money transfer of around Rs 300 crore from more than 150 bank accounts of various persons in Nagaland to accounts of Sreevalsam group chairman MKR Pillai and his relatives over the last 5 years.
"Three banks in Kohima and Dimapur, residences of Pillai and his aides, his office and business places were checked as part of the probe. ," IT official said.
An IT official termed the money flow from Nagaland to accounts of MKR Pillai as 'mega scam'. Since the funds that were diverted was from the Centre, the matter would be referred to the CBI for investigation. "The central government has been granting crores of the fund for the development activities and security purposes. Some of the evidence collected as part of the probe attract CBI investigation," he said.
The IT officials also said that when was investigation was underway the there was little cooperation from the various government departments in Nagaland. "We had little access to documents. The officials were less cooperative. Hence some of the crucial documents could not be collected. This is another reason why we would seek the assistance of CBI to carry out a parallel investigation," IT official said.
MKR Pillai, who started as constable retired as DSP with Nagaland Police. IT, in the investigation found that MKR Pillai owns a wealth of more than Rs 1000 crore.