Income Tax Department seizes Rs 90 crore of unaccounted money in Chennai

CHENNAI: The investigation wing of the income tax department in Chennai has seized Rs 90 crore in cash -- Rs 12 crore of that amount was in the new currency notes, mostly 2,000-rupee notes. The raids were conducted in premises at the commercial hub of T Nagar here.

"Yes, it is a fact that we have seized Rs 90 crore in cash. The persons, who are contractors of some kind, are K Srinivasalu, Prem Kumar, and Shekhar Reddy. Their exact identity, and connections are still being probed," an IT investigator told ET. Officials had also seized 100 kg in bullion. The official qualified the seizure as one of the largest in the state in recent memory.

The official said the probe is going on to find out if the three persons have been hoarding cash on someone's behalf, and other violations under the Income Tax Act. It has been a month since the Narendra Modi-government announced invalidating the 500 and 1,000-rupee bills in circulation. The government had announced the release of 2,000 rupee notes a short while after.