CHENNAI: The Income Tax Department is likely to enforce Black Money Act against Chettinad Group of Companies following raids on 60 of its premises across Tamil Nadu, Karnataka, Andhra Pradesh, which led to seizure of unaccounted cash to the tune of Rs 23 crore and foreign assets to the extent of Rs 110 crore in the form of fixed deposits.
The search on the group, which has evaded income of over Rs 700 crore, has been temporarily stopped and investigations are being carried out, a department spokesperson said. The raid were held Chennai, Tiruchy, Coimbatore, apart from Andhra Pradesh, Karnataka and Mumbai.The spokesperson also said that a large number of lockers belonging to the group have been identified, which will be operated in due course.
“Inflation of expenditure to take out cash and also to reduce profits, receipts not accounted fully, bogus claim of depreciation, etc. amounting to Rs 435 crore were also identified. There are indications of capitation fee receipts for medical admission to postgraduate programmes,” the department said in a statement.
“During the search, details of the actual financial transaction between the searched group and another groups for sale of three infrastructure facilities at various ports were found. Complex financial arrangements creating bogus liabilities from their own concerns were also seen to be made, ostensibly, to reduce capital gains arising out of this transfer. Capital gains amounting to approximately Rs 280 crore have been arrived at. Similarly, huge capital introduction through a web of bogus inter corporate transactions within the group is also under the scanner,” the statement said.