On October 5, the Income Tax Department conducted searches in two Kanchipuram cases, one being a Chit Fund and Financing Group and the other a retailer of silk sarees and other clothing.
The search operations were carried out in 34 premises located in Kanchipuram, Chennai and Vellore, according to a statement from the Ministry of Finance on Saturday.
In the case of the Chit Fund group, it was found that this group was operating an unauthorized chit fund business and that all investments and payments over ??400 crore, in recent years, has been paid entirely in cash. Evidence has revealed that the group has earned unrecorded income in the form of commissions and dividends, the statement read.
“Numerous promissory notes, signed post-dated checks and power of attorney documents held as collateral for loans made or bondholders were also seized. “It said.
The finance ministry said numerous property documents registered in the names of the group members and their associates were found and seized. Properties owned by members of this group include lavish homes, farms and land, luxury vehicles, and more.
“Many partners and investors of the chit fund have been investigated and they have also admitted to making unrecorded investments and earning unrecorded income. ??1.35 crore and gold jewelry of approximately 7.5 kg were seized. The undisclosed income detected so far in this group is greater than ??150 crore, “the statement read.
“In the case of the other group, engaged in the trade of silk sarees and other clothing, evidence was found regarding the suppression of sales in the past 4 years. Manipulation of sales figures via an app Custom software has been detected. Publish such manipulations, the “It said.
The finance ministry said unaccounted for cash from ??44 lakh and some 9.5 kg gold jewelry were seized. The undisclosed income detected so far in this group is greater than ??100 crore, he said.
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