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Income Tax Department raids several Tamil Nadu premises and finds chit fund business

By on October 11, 2021 0

The Income Tax Department conducted search and seizure operations on October 5 in two fraud cases in Tamil Nadu. As the Ministry of Finance informed on Sunday, the search operations were carried out at 34 premises in Kanchipuram, Chennai and Vellore in connection with a quotation fund case of a finance group and a retailer. of silk sarees and other clothing.

According to the press release from the CBDT, a total of Rs 250 crore in unrecorded cash and 9.5 kg of gold jewelry were seized during searches carried out in several premises.

Cash and gold seized in computer raids in Tamil Nadu

According to the official statement, during the raids on the chit fund group, it was discovered that the group was running an unauthorized chit fund business and that all of its investments and payments amounted to over Rs 400 crore over the course of in recent years. In addition, the group also realized unrecognized income in the form of commissions and dividends. The IT team also found evidence including numerous promissory notes, signed post-dated checks, powers of attorney, unrecorded investments and expenses, property documents.

Property documents seized by IT officials included documents on lavish homes, farms and land, luxury vehicles and many more. Apart from that, unrecorded cash of Rs 1.35 crore gross and around 7.5kg of gold jewelry were seized.

Speaking further of the retailer of silk sarees and other clothing, the department found evidence relating to the suppression of sales over the past four years. He reported that manipulation of sales figures through a custom software application was detected, after which group members used to withdraw unrecorded money daily and invest more in land and buildings.

The IT team also seized unrecorded cash of Rs 44 lakh and around 9.5 kg of gold jewelry after the raid.

In the meantime, investigations are underway in both cases.

The IT department raids several cities across the country

Several raids have been carried out by the Income Tax Department in some large states such as Maharashtra, Karnataka and Uttar Pradesh across the country. The IT department suspected that there were groups and individuals from various companies associated with a vast network of undisclosed foreign bank accounts and assets. The Ministry of Finance issued a statement indicating that these groups / individuals used the services of a Dubai-based financial service provider to create a questionable and complex network of foreign companies and trusts based in tax havens such as Mauritius. , United Arab Emirates, BVI, Gibraltar, etc. to hold their unrecorded assets.

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