I-T Dept seizes Rs 2 cr of unaccounted cash from group running educational institutions in TN

The Income Tax (IT) Department has seized around Rs 2 crore of unaccounted cash during raids conducted on a group operating in leading educational institutions in Chennai and Madurai region.

"The search carried out at 64 places across the state at the office of the trust, residences of the trustees and key employees of the group. The search has resulted in the seizure of around Rs 2 crore of unaccounted cash," the IT Department said in a statement on Friday.

The charitable trusts are running a medical college and hospital, engineering colleges and schools across Tamil Nadu.

Out of the unaccounted income detected so far, the group has admitted an amount of Rs 532 crore as their undisclosed income, the IT Department said.

"During the search, evidence were unearthed of fees collected under various nomenclatures from students of engineering colleges, schools run by the group which were received in cash and not accounted for, and cash receipts not accounted for in the hospital account," it added.

"Loans and interest were seen repaid in cash which were earlier taken in cash for the purpose of unaccounted investments. These receipts were utilised for the purchase of properties by paying on-money," the statement further said.

The searches have been temporarily concluded and further investigation is underway.

( With inputs from ANI )