IT raids on two Chennai-based private syndicate financing firms unearth undisclosed sum of Rs 300 cr
The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes.
CHENNAI: The Income Tax Department unearthed undisclosed income of more than Rs 300 crore after it carried out search and seizure operations on two private Syndicate Financing groups based in Chennai.
It also seized unaccounted cash worth Rs 9 crore during the search operation which was carried out at 35 premises located in Chennai on Friday. During the course of the search, it was found that that there were undisclosed property investments and other income suppression.
The evidence found in the premises of the financiers and their associates revealed that these groups have lent to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which is in cash. During the search, it was detected that they are charging high rate of interest, a part of which is not offered to tax.
The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes. Further, the unaccounted monies are disguised and brought into the books of account of the groups as unsecured loans, sundry creditors, etc, a release stated.