The Income Tax department has carried out extensive raids at 22 locations in Tamil Nadu on October 28 based on the inputs of the tax evasion. In what has become one of the state-wide searches, the Income Tax department had conducted raids in Chennai, Erode, Coimbatore, Tiruppur, and Namakkal.
The search was connected to the top educational institution that particularly runs several schools and colleges in the western districts of Tamil Nadu. According to reports, the IT team comprised of more than 30 officials had formed various teams and conducted searches at 18 schools and colleges, located at Vaikalmedu, Koorapalayam Pirivu, and at Sampath Nagar, Erode.
All these institutions come under Nandha Educational Institutions, headquartered in Erode, and run by founder-chairman V Shanmugan. Along with the educational institution, the Income Tax department had stormed into the residence of the DMK leader in Coimbatore. The reports say that a team of six officials had conducted searches at the residence of R Krishnan alias 'Paiya' Gounder at Kalapatti, Coimbatore.
Paiya Gounder is the in-charge of the DMK's Coimbatore urban district west unit. When the IT officials conducted the search inside his residence, the DMK members and his supporters had gathered outside his residence and raised slogans against the IT officials by claiming that the IT raid was a planned move by the BJP and ADMK governments. The local DMK MLA said that despite all these raids, the party will win the 2021 Assembly elections and MK Stalin will be the Chief Minister.
Some reports say that Paiya Gounder has been observing business associations with the Nandha Group of Institutions. Along with these people, the IT had conducted raids at the properties that belong to V Sathyamoorthy, who is an engineer and owns a private construction company. The Central department had said that the raids were carried out based on the information that the tuition fees collected by the institution from the students hadn't fully brought under the books of accounts.
Sathyamoorthy has been involving in constructing housing boards in various districts and his company had also carried out projects for the Public Works Department and his company has also been constructing the Namakkal Medical College and Hospital. In the overall searches that lasted for many hours, the IT department had unearthed alleged tax evasion worth Rs 150 crore. The officials had seized Rs 5 crore in the form of cash.
The officials had also seized the electronic devices which have been getting examined. Following the raids, the Central Board of Direct Taxes (CBDT) said that the evidence found during the search had revealed that the allegations regarding suppression of fees received are true and the evaded and unaccounted receipts had gone to the personal account to the trustees and these evaded taxes were invested in real estate through a company.
The spokesperson of CBDT said that the search has led to the identification of unaccounted investments of around Rs 150 crore and cash amounting to Rs 5 crore has been seized.