CHENNAI: Income Tax department could enforce Black Money Act against Chettinad Group of Companies after raids in 60 premises across Tamil Nadu, Karnataka, Andhra Pradesh resulting in the seizure of unaccounted cash worth 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 evaded income of over Rs 700 crore, has been temporarily concluded and investigations are being carried out in Chennai, Trichy, Coimbatore, various places in Andhra Pradesh, Karnataka, and Mumbai, said an Income tax spokesperson.
The spokesperson 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, the bogus claim of depreciation, etc. amounting to Rs 435 crore were also identified. There are indications of capitation fee receipts for medical admissions to postgraduate programmes," said Income Tax department in a statement.
"During the search, details of the actual financial transaction between the searched group and another group for the 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 the 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," according to the statement.