The Income-Tax (I-T) Department carried out searches and seizures at two private syndicate financing groups in Chennai and detected undisclosed income of over ₹300 crore. Apart from this, unaccounted-for cash of ₹9 crore has been seized so far. The searches were carried out on 35 premises in Chennai on Thursday.
According to the details furnished by the department, evidence found on the premises of the financiers and their associates revealed that the groups had lent money to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which was in cash.
During the searches, it was detected that they were charging high rates of interest, a part of which was not offered to tax. Most of the interest payments by borrowers were received in dummy bank accounts, and the same had not been disclosed for tax purposes.
Further, the unaccounted-for cash was brought into the books as unsecured loans and sundry credits.
Other evidence found revealed numerous undisclosed property investments and other income suppression by the groups.
Further investigations are in progress.
