Unaccounted cash, gold jewellery seized in I-T raids

Premises of chit fund firm, textile group searched

October 11, 2021 12:37 am | Updated 12:37 am IST - CHENNAI

The Income Tax Department seized unaccounted money and gold jewellery in two different search operations it had conducted at 34 locations in Kancheepuram, Chennai and Vellore.

In the search on the premises of a chit fund and financing group, the officials seized unaccounted cash of ₹1.35 crore and gold jewellery of about 7.5 kg. The undisclosed income detected in this group so far is more than ₹150 crore. It was found that this group was running an unauthorised chit fund business, and all the investments and pay-outs of more than ₹400 crore, in the last few years, were done entirely in cash. Evidence revealed that the group had earned unaccounted income by way of commission and dividends.

Numerous promissory notes, post-dated cheques and power of attorney documents kept as collateral for the loans given or from chit subscribers were seized. Many property documents registered in the names of group members and their associates were also seized.

In the case of the second group that was in the business of silk saris and other garments, unaccounted cash of ₹44 lakh and gold jewellery of about 9.5 kg were seized. The undisclosed income detected so far in this group is more than ₹100 crore. Evidence was found relating to sales suppression during the last four years. The manipulation of sales figures through a customised software application was also detected. After such manipulations, the group members used to take out the unaccounted cash on a regular basis, and made investments in land and buildings.

Further investigation is on in both the cases.

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