Unaccounted cash up to Rs 30 crore was seized by the Income Tax Department sleuths from a Namakkal-based educational group, with branches in other cities, including Chennai, following raids on Friday. The group also runs NEET coaching centres.
According to a release, tax evasion by the institution has been estimated to be about Rs 150 crore. The raids were carried out on Friday in 17 premises, including Namakkal, Chennai, Perundurai and Karur which included the residences of the group’s promoters.
The raids followed intelligence inputs that the group indulged in substantial tax evasion by suppressing the receipts of students for fee received in cash. I-T sleuths here claimed that they have seized evidence both in physical and electronic forms. “The modus operandi was to receive part of the fee in cash and not account them in the regular books. Instead, such receipts were maintained separately. Diaries and storage devices containing such receipts have also been seized,” said an official.
The unaccounted for cash was allegedly used to buy immovable properties by the promoters in other towns and then leased to the group’s trust for long-term purpose to expand the group’s presence in these towns. The highly-paid faculty for its NEET coaching centres have also been found to have been given salaries without accounting them. I-T officials said that the group comprises several partnership firms besides a trust controlled by a group of individuals.