CHENNAI: Income tax searches carried out in places linked to a Chennai-based group, with interests in varied sectors, have unearthed more than Rs 1,000 crore in alleged unaccounted income, along with unexplained gold, silver and cash worth over Rs 70 crore, I-T sources said.
The I-T department’s Investigation Directorate in Chennai launched coordinated searches on December 9 across the group’s flagship company, which operates in refrigerant gases, ash handling, power trading and solar generation, as well as in premises of associated companies involved in finance and jewellery and informal hawala networks. The operations are still on, sources said.
It is learnt that the raids have so far uncovered evidence of bogus purchases totalling Rs 1,112 crore related to coal procurement and ash-handling contracts, pointing to what investigators believe could be an extensive billing and routing network. Another line of inquiry concerns Rs 382.68 crore raised by the company from 53 individuals as equity contributions.
According to sources, 15 of these subscribers do not file tax returns and 37 have not disclosed the transactions in their filings. Many are employees or associates of the promoters, raising suspicions that the funding may amount to unexplained capital infusion.
The probe has also flagged an alleged $30mn investment in a Swiss pharmaceutical company, whose source of funds is under examination. It is also learnt by investigators that Rs 115 crore in investments into an energy company were “immediately diverted” after credit, triggering further scrutiny.
In some cases, the investigation suggests the use of proxy entities. One company created in the name of a driver allegedly received cash deposits of Rs 8.5cr and saw transactions exceeding Rs 200 crore.
Beyond the group itself, the department has extended the inquiry to associates, including a financier. Hawala operators linked to the network are alleged to have facilitated more than Rs 10cr in transfers through unofficial channels, sources said.