The Income Tax officials have seized Rs 1.6 crore cash during the raids at the residence of former Congress MLA from Nellithope A. John Kumar. “We have seized cash of Rs 1.6 crore. There is tax evasion. We are yet to ascertain the extent of evasion, “a senior income tax official told The Hindu.
Just two days after he vacated his constituency for Chief Minister V. Narayanasamy to contest a by-election, Mr. John Kumar had come under the surveillance of Income Tax Department. Personnel from the Income Tax Department on Saturday searched his house at Savaripadayachi Street and nearby office premises at Nellithope.
Mr. Kumar on Thursday resigned from the Assembly to enable Mr. Narayanasamy to contest the by-election.
The search comes at a time when Mr. Kumar, a major multi system operator (MSO) who offers feeds to a large number of local cable operators, had been facing charges of taking money for vacating his seat. Sources privy to the search, however, said Mr. Kumar was under the scanner of the I-T department for not showing proper accounts of his MSO operations. He is a major distributor of set-top boxes in Puducherry and owns a few cable channels.
I-T department had raided the house of Mr. Kumar on December 16, 2011 for alleged tax evasion.
MLA refutes reports
Reacting to the raid, the former MLA said he had submitted proper documents to the Income Tax department and the amount of Rs. 1. 6 crore seized from his house was proceeds from the sale of a land that he owned.
“Proper documents related to my business deals have been submitted to the department. I am going abroad for a few days and will make myself available before the tax authorities for any further clarifications,” he said.
He accused the AIADMK of spreading falsehood with the intention of maligning the image of the Congress party.
