CHENNAI: The income tax department has seized 2 crore in cash and detected unaccounted income worth 532 crore during searches on a chain of leading educational institutions in the last few days in Chennai and Madurai.
Searches were held at more than 64 places, including the premises of the managing director of the group, and residences of several people close to him.
"The income tax department mounted a search on a group operating leading educational institutions, having a large number of schools and
colleges
in Chennai and Madurai region. The search was conducted at the office of the trust, residences of the trustees and key employees of the group," said CBDT spokesperson Surabhi Ahluwalia in a statement. The searches were held in Chennai, Madurai, Theni, Thanjavur and several other places.
The charitable trusts are running a medical college and hospital, engineering colleges and schools across
Tamil Nadu.
During the raid, I-T officials found evidence showing collection of fee under various heads from
students
to evade tax, said a senior official. Schools run by the group received cash from students, but they were not accounted for in the books. Much of it was used for purchase of property and repayment of loans, said the official.
"The search has resulted in the seizure of 2 crore of unaccounted cash. Out of the unaccounted income detected so far, the group has admitted to 532 crore undisclosed income," said the spokesperson. The searches have been temporarily concluded. Further investigations are under way, the official said.