STOCK MARKET BSE NSE

Raids on Chettinad Group: I-T sleuths likely to invoke black money law in assets seizure case

The recent raids at the offices of the group resulted 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.

Published: 15th December 2020 03:42 PM  |   Last Updated: 04th January 2021 10:07 AM   |  A+A-

After demonetisation, raids were almost a daily affair for the Enforcement Directorate, IT personnel and CBI. Over Rs 266 crore found at a Malappuram bank and the raids on the former TN Chief Secretary Rama Mohana Rao at his office and residence were a few instances that stood out.

The search on the group, which evaded income of over Rs 700 crore, has been temporarily concluded

By Express News Service

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.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp