IT raids on two groups in Chennai: Rs 300 crore black money seized

35 complexes raided in Chennai on the same day: Group lends heavily to Tamil Nadu industries

New Delhi: The CBDT on Saturday claimed that the income tax department had raided two Chennai-based private syndicate financing groups and seized Rs 300 crore in black money. In the capital of Tamil Nadu, raids were carried out on September 6 in three complexes.

The CBDT said the raid led to the seizure of undeclared income of more than Rs 300 crore and unaccounted money of Rs 9 crore.

The raid on the complex of these financiers and their associates found evidence that the group was financing large industry groups in Tamil Nadu and a large portion of it was in cash.

The Income Tax Department's investigation revealed that the group was charging high interest rates which prevented it from paying taxes. The modus operandi of this group was such that most of the interest payments were made in dummy bank accounts. So it didn't have to be declared for tax, the Income Tax Department's policy-making department said.

The CBDT alleged that the unaccounted money was being brought into the books of account by the group's unsecured loans, Sunday creditors, etc. Several undeclared property investments and other income were not shown by these individuals, who were exposed in the raid.