The raids were based on charges that the fees charged to students “were not fully accounted for.”
On October 28, the Income Tax department conducted a search of 22 locations for a Tamil Nadu-based group that ran multiple educational institutions, leading to the detection of an alleged tax evasion worth approximately 150 million rupees. With the search currently underway, cash worth Rs 5 million has been seized.
The institutions are reportedly under the Nandha Educational Institutions run by President and Founder V Shanmugan. Others associated with this raid include R Krishnan, DMK’s West Coimbatore urban district unit, and V Sathya Moorthy, an engineer who owns a private construction company. The action was carried out on the basis of information that the fees charged to students “were not fully booked” in the ordinary account books.
The evidence found during the search reveals that the allegations about the suppression of the fees received are true and the unaccounted receipts are diverted to the personal accounts of the trustees, who in turn are invested in real estate through a company. The other shareholders of the company, such as an architect from Tirupur and a textile entrepreneur, were also covered, ”said the statement from the Central Board of Direct Taxes (CBDT).
CBDT, the administrative authority for the Income Tax (IT) department, said the searches were conducted on Wednesday at 22 locations in Coimbatore, Erode, Chennai and Namakkal of the group and its associates, including a civil contractor.
“The search has led to the identification of unaccounted investments and cash payments in the amount of around Rs 150 million. Cash worth Rs 5 million has been seized. Some lockers have yet to be operated. The search still continues. ” Added statement from Surabhi Ahluwalia, Commissioner of Income Tax (Media and Technical Policy) and Official Spokesperson for CBDT.
The seized electronic devices are also being examined, he said.
In the case of a raid on Namakkal civilian contractors, expense inflation has been found by recording “bogus expenses” on labor charges, material purchases, etc. “During searches in the case of Namakkal’s civil contractors, expense inflation was found by recording false expenses under labor charges, material purchase, etc.,” the statement added.
(With PTI inputs)
.
