CHENNAI/DELHI: The Income Tax department on Monday conducted searches at nearly 50 places linked to real estate firm G Square Realtors Private Limited across Tamil Nadu, Karnataka, Telangana and Delhi. According to sources, nearly 300 officers were carrying out the search operation which is expected to continue tomorrow.
The tax search comes a week after Tamil Nadu BJP president K Annamalai alleged large-scale corruption and released purported details of properties owned by DMK ministers, family members, and party functionaries.
The Chennai-based firm, in response to Annamalai’s charge, had said that it had been “subjected to unwarranted persecution” for the past few months and it was “neither owned nor controlled” by the DMK’s ‘first family’.
In Chennai, Central Reserve Police Force personnel were deployed for security in places where the searches were carried out, including the firm’s office on Harrington Road on Monday. In Anna Nagar, DMK workers held protests and blocked roads briefly as I-T sleuths searched DMK MLA M K Mohan and his son Karthik Mohan’s properties. Karthik Mohan is alleged to be a stakeholder in the real estate group.
In Coimbatore, state police personnel were deployed for security when a team of around 10 officials searched the realtor’s office on Avinashi Road. A house belonging to the managing director of a pump manufacturing company in Coimbatore, who is believed to be a close associate of G Square proprietors, was also searched. According to sources, the TN-based real estate company has properties in Chennai, Kancheepuram, Coimbatore and Tiruchy and in cities in Telangana and Karnataka.
‘I-T sleuths started preparation last week itself’
According to sources, tax authorities had started preparing for the operation last week itself and the I-T investigation wing had sought additional manpower.
Incidentally, the Supreme Court last week rejected the plea of 14 political parties, including the DMK, to restrain central agencies like the Enforcement Directorate, the CBI and the Income Tax department from targeting ruling parties and politicians in non-BJP ruled states.
Annamalai, in his ‘DMK files’, had alleged that G Square is owned by ‘DMK’s first family’ and the company has a total revenue of Rs.38,827.70 crore. The company amassed wealth through illegal means, Annamalai had said.
Refuting the allegations, G Square had said the alleged valuation of the company’s assets is inaccurate and completely off track. The company said its assets and liabilities are matters of public record which are available with the Registrar of Companies.
“The company’s revenue holding of Rs.38,827.70 crore paints a misleading picture as if the company has purchased all the land and retained them. Basic research and verification of the encumbrance certificates (EC) that are readily available online would show that the company developed the projects at different points of time and sold the plots to about 6,000 customers over the years,” the statement issued by the firm said.
Last year, Annamalai alleged that the housing department was granting approval at an unusually quick pace for projects executed by G Square, particularly the firm’s projects in Coimbatore, at Egattur in Chengalpattu district, and at Neelankarai in Chennai. Tamil Nadu minister for housing and urban development S Muthusamy, however, had refuted the allegations.
Responding to reporters’ questions in Erode on Monday, the minister reiterated that no special concession had been extended to G Square. “G Square is a private firm, which was started in 2013, and the present DMK government is not giving any special concessions to the firm. No favouritism is shown to the company by the housing department,” he said.
No special concession given to firm: Minister