Black money hunt leads I-T to ex-cop, assets worth Rs 400cr

KOCHI: The intelligence and criminal investigation wing of the income tax (I-T) department in Kochi has unearthed unaccounted for wealth worth Rs 400 crore from a firm owned by a former additional superintendent of police in Nagaland who has also been awarded the President's police medal.

I-T sleuths suspect MKR Pillai to be a front for politicians and top bureaucrats in Nagaland, and are investigating whether government funds, especially central funds for the state, were illegally diverted and later transferred through him.

Officials said Pillai will be questioned in this regard.

Simultaneous raids were conducted in Kerala, Karnataka, Nagaland and Delhi after doubts emerged that Pillai's Sreevalasam Group was involved in “suspicious financial dealings“.

I-T sleuths began the investigation against Pillai after they discovered that he had declared assets worth Rs 50 crore following the demonetisation announcement in November, and his net worth was found to be disproportionate to his known sources of income. Pillai, who joined Nagaland Police as a constable in Mokokchung in 1971, retired as additional SP six years ago. He received the President's police medal for meritorious service in 2005. Called `Pillai Sir' across Nagaland, he is known to have close links with top politicians and is influential at the state police headquarters.

Sreevalsam Group has a variety of business interests, including jewellery , textiles, gold loan and schools, in Kera a and other states. “The group also has businesses in Nagaland, started in the name of benami owners,“ an I-T sleuth said.

Nagaland DGP LL Doungel said he was surprised about the recovery of assets worth Rs 400 crore from the property of Pillai, who is currently employed with Nagaland police as a consultant. “I read about the raids in the papers. I am concerned.He is currently awayon leave to his hometown... and will be back here next week. Let him come back and it will be better to gather from him whatever is there in the case,“ Doungel told TOI.

Sreevalsam Group was unavailable for comment.

(With inputs from Prabin Kalita in Guwahati)