The Income-Tax department on Wednesday carried out searches at 22 premises in Coimbatore, Erode, Chennai and Namakkal on a group engaged in the running of educational institutions and their associates, including a civil contractor. The search was carried out based on information that fees collected from students were not fully accounted for in the regular books of accounts.
Shreds of Evidence found during the search revealed that the allegations regarding suppression of fees received are real and the unaccounted receipts are siphoned off to the personal accounts of the trustees, which in turn are invested in real estate through a company. The other shareholders of the company, an architect from Tirupur and a textile businessman were also covered. Electronic devices seized during thesearch are being examined.
During the searches in the case of the civil contractors from Namakkal, inflation of expenditure by booking bogus expenses under labour charges and material purchase have been found.
The search has led to the identification of unaccounted investments and on-money payments to the extent of around ₹150 crore. Cash amounting to ₹5 crore has been seized. Some lockers are yet to be operated. Search is continuing, says a government release.