Undisclosed income worth Rs 300 Crore found in tax raids on 2 private companies in Chennai
The Income Tax Department uncovered undisclosed income of more than Rs.300 crore after conducting search and seizure operations at 35 premises linked to two private union fundraising groups based in Chennai.
“On September 23, 2021, the Income Tax Department carried out search and seizure operations on two private Financing Syndication groups based in Chennai. The search operation was carried out in 35 premises located in Chennai”, the Ministry of Finance said in a statement.
Evidence found at the premises of the financiers and their associates revealed that these groups have loaned to various large corporations and businesses in Tamil Nadu, a substantial portion of which is in cash.
According to the statement, during the research, it was detected that they were charging a high interest rate, part of which is not offered for tax. The modus operandi adopted by the groups revealed that most of the interest payments by the borrowers were received in fictitious bank accounts and that these were not disclosed for tax purposes.
The ministry further informed that the unrecorded amounts are disguised and carried in the books of the groups as unsecured loans, sundry creditors, etc.
Other evidence found during the search revealed numerous undisclosed real estate investments and other income suppressions by these people, he added.
“The searches, so far, have detected undisclosed income of over Rs 300 crore. Unaccounted cash of Rs 9 crore has been seized so far,” the ministry informed.
Further investigations are in progress.