CHENNAI: Income Tax officials seized Rs 3 crore and detected unaccounted cash to the tune of Rs 175 crore from a group of civil contractors in southern TN on Wednesday. The seizure followed after search operations in 18 premises, mainly in Madurai and Ramanathapuram districts, based on inputs that the cash is likely to be distributed for election purposes, said a release.
During the searches, the officials found that the contractors had entered bogus expenses under various heads to reduce the profits. The declared profits were less than 2 per cent of the turnover, when it actually exceeded 20 per cent, said an I-T department spokesperson. The release added, over 100 subcontractors were also engaged to register expenses to meet illegal payments.