Income Tax raid on Chettinad Group; documents, jewellery seized

CHENNAI: Income Tax sleuths have seized several incriminating documents, unaccounted cash and gold jewellery during raids on the Chettinad Group of Companies, a top official said today.

"Yes. It has been going on. Yesterday morning only the raids ended. Some unaccounted cash, gold and documents were seized," a top official told on conditions of anonymity.

He declined to reveal the exact value of the seizures.

IT officials began the raids on June 10 at 35 places of the group in Tamil Nadu and two each in Hyderabad and Mumbai. The raids continued for several days and ended on June 15.

The raids assume significance in the wake of a complaint from group's Chairman Emeritus and noted industrialist M A M Ramaswamy against his disowned adopted son M A M R Muthiah.

Following the complaint, police filed a case against Muthiah under various IPC sections, including criminal intimidation.

Ramaswamy had on June 9 declared that he has disowned his son M A M R Muthiah, whom he adopted in 1996.

Recently, Ramaswamy had alleged that Muthiah owed a huge amount of dues to the Service Tax department, but declined to specify the amount, just saying that the Department Secretary had asked him (Muthiah) to pay Rs 252 crore first.

Ramaswamy said he had written and registered a will that all assets after his death would go only to the newly formed trusts - Dr M A M Ramaswamy Chettiar of Chettinad Charitable Trust and Dr M A M Ramaswamy Chettiar Trust.

The 84-year-old philanthropist and former Rajya Sabha MP had stated that the assets would not go to Muthiah or anyone claiming on his behalf or under him. He had also said Muthiah would not perform any ceremonies or obsequies on his demise.

The family feud in the group that has business interests across various verticals like cements, hospitality and education, came to the fore after Ramaswamy was not elected as a Director in the AGM of Chettinad Cement Corporation, the group's flagship company, in August 2014.