IT dept detects Rs 250 crore unaccounted cash transactions after raids on Neyveli based group

The Income Tax department detected unaccounted cash transactions of Rs 250 crore and seized Rs 12 crore cash after it raided a group based in Tamil Nadu's industrial town of Neyveli engaged in the business of chit funds which also runs educational institutions, the CBDT said on Tuesday. The searches were carried out on December 16, and 30 premises of the unidentified group, also engaged in real estate and finance business, in Neyveli (Cuddalore district), Coimbatore, Nilgiris and Chennai were covered.

"...a remotely located cloud server containing parallel set of books of account secretly maintained by key persons of the group has been unearthed," the Central Board of Direct Taxes (CBDT) said in a statement.

The preliminary analysis of the seized digital evidences, the policy-making body for the tax department said, shows details of unaccounted money generated through "under-reporting of income from chit fund business and deposits received in cash from various parties".


It said unaccounted money, so generated, has been utilised to make cash payments for investments in real estate business.

"Prima facie analysis indicates the quantum of unaccounted cash transactions in immovable properties to be to the tune of Rs 250 crore," the statement said.

It added that Rs 12 crore "unaccounted" cash was also seized.