Chennai: Search operation by IT

The Income Tax Department conducted searches in Kanchipuram in connection with cases relating to a Chit Fund and Financing Group and a retailer of Silk Sarees and other garments.

New Delhi [India], October 10 : The search operations were carried out at 34 premises located in Kanchipuram, Chennai, and Vellore. In the case of the Chit Fund group, it was found that this group was running an unauthorized chit fund business and all the investments and pay-outs of more than Rs. 400 crore, in the last few years, were done entirely in cash.
Numerous Promissory notes signed post-dated cheques, and power of attorney documents kept as collateral for the loans given or from chit subscribers have also been seized. The group had also earned unaccounted interest income from cash financing and had huge unaccounted investments and expenses.
Many property documents registered in the names of group members and their associates have been found and seized. Properties owned by this group’s members include palatial homes, farmhouses, and lands, luxury vehicles, etc. whereas they were either non-filers or had disclosed negligible income in their tax returns, so far.
Unaccounted cash of Rs. 44 lakh and gold jewelry of about 9.5 kg have been seized. The undisclosed income detected, so far, in this group is more than Rs. 100 crore.
Further investigations in both these cases are in progress.

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