CHENNAI: On the hunt after receiving information that State government contractors were moving large amounts of cash for possible distribution among voters, Income Tax officials claimed that they detected Rs 450 crore tax evasion by government contractors in Tamil Nadu. After searching for four days, they also seized Rs 5 crore in cash and jewels worth an equal amount.
According to Income Tax Department sources, the investigators detected tax evasion to the tune of Rs 450 crore during searches at about 50 places linked to eight State government contractors. The teams have also seized Rs 5 crore in cash and gold and silver articles worth Rs 5 crore from the premises they searched.
Apart from the cash and gold, documents allegedly showing evidence of tax evasion to the tune of Rs 450 crore have also been seized, said official sources.
The searches began on Friday in Chennai, Coimbatore, Tirupur, Vellore, Theni, and Tirunelveli based on information about illegal funding for election campaigns and the transfer of cash for possible distribution among voters.
In Chennai, the searches were carried out in Adyar, Tiruvanmiyur, Abiramapuram and Virugambakkam. In many places, the searches went on till Monday morning.
Incidentally, the I-T department’s claim came a day after the State flying squad seized Rs 3.9 crore in cash – allegedly linked to senior BJP leader and Tirunelveli candidate Nainar Nagendran - from a trio travelling on a Tirunelveli-bound express train at Tambaram railway station.