I-T department knocks civil supplies’ door as ICDS supplier probed

I-T department sources said the probe was related to evasion of tax by floating a large number of shell companies.
 
Published: 06th July 2018 04:55 AM | Last Updated: 06th July 2018 04:55 AM By Express News Service

CHENNAI: Tamil Nadu Civil Supplies Corporation Managing Director M Sudha Devi was quizzed by the Income Tax department on Thursday even as I-T sleuths conducted simultaneous searches on the premises of Tiruchengode-based Christy Friedgrams Industry (CFI), a food processing company closely associated with implementation of the Integrated Child Development Services (ICDS) scheme.

I-T department sources said the probe was related to evasion of tax by floating a large number of shell companies. The company supplies nutritious food to 563 anganwadis in the State. According to its website, it started operations a few years after the first ICDS scheme was announced in TN in 1982.A top income tax official said the Managing Director of the State civil supplies corporation was quizzed on any links to the tax evasion. “There were no raids at her premises in All India Service quarters located at Nerkundram. It was only investigation,” said the official.

Besides 53 premises of CFI, officials are also conducting searches at 17 premises belonging to Agni Estates as it was found that the real estate firm had common transactions with CFI and had floated shell companies.Overall 70 premises across the State belonging to CFI and Agni Estates were raided, of which 40 are located in Chennai. Raids were also conducted in Tiruchengode in Namakkal district, Coimbatore and Nammakal.

CHRISTY Friedgrams Industry, the Tiruchengode-based company, had been under the I-T scanner since 2016.Officials said that searches were also being done in three places in Karnataka, which include Nelamangala, Davangere and Gulbarga. The firm had courted controversy in 2012 over an agreement with Karnataka’s Women and Child department which was later cancelled for supply of substandard food to anganwadis under the ICDS scheme.