Over ₹350 cr. seized from educational group
I-T Department conducted searches on November 7, covering 32 premises
12/11/2019, SPECIAL CORRESPONDENT,CHENNAI
The Income Tax Department said its preliminary estimate of the undisclosed income from searches conducted on the premises of a -based educational group is over ₹350 crore.
An official statement did not disclose the name of the group, however, sources told The Hindu, that the searches were conducted on Jeppiaar educational institutions.
Jewellery and cash
About ₹5 crore in cash and jewellery worth over ₹3 crore were seized in the action, it said.
According to an official statement, the searches were conducted on November 7 covering 32 premises of the group running educational institutions in and around Chennai for the past 30 years.
The institutions run by the group include a number of engineering colleges, polytechnic institutes, dental college, nursing colleges, hospitals and schools. The group has interests in other sectors such as fishing harbour, cement, milk, bottled water and iron and steel.
The Income Tax Department said there were reports of the group accepting fee/donations in cash, which were largely unaccounted for, and of the funds of the trust being diverted to other sister concerns.
Suppression of receipts
During the search proceedings, evidence of suppression of fee receipts have been found, it said.
In addition, the Department said one group entity has adopted the modus operandi of showing the actual fees received as advance fee collection in the liability side of the balance sheet and advancing the said amounts as payments to its sister concerns against certain expenses/purchases, which were found to be bogus/inflated.
The I-T Department noted that thus the money of the trusts is found to be diverted outside the trusts for the objects outside the scope of the trust. Evidence has been found — unexplained cash debits, unrecorded cash expenditure, suppression of sale receipts in fishing harbour, loan advanced in cash, non-disclosure of property, etc., it said.
The search proceedings have been temporarily concluded and investigations into the findings are in progress, Income Tax Department said.
I-T Department conducted searches on November 7, covering 32 premises
12/11/2019, SPECIAL CORRESPONDENT,CHENNAI
The Income Tax Department said its preliminary estimate of the undisclosed income from searches conducted on the premises of a -based educational group is over ₹350 crore.
An official statement did not disclose the name of the group, however, sources told The Hindu, that the searches were conducted on Jeppiaar educational institutions.
Jewellery and cash
About ₹5 crore in cash and jewellery worth over ₹3 crore were seized in the action, it said.
According to an official statement, the searches were conducted on November 7 covering 32 premises of the group running educational institutions in and around Chennai for the past 30 years.
The institutions run by the group include a number of engineering colleges, polytechnic institutes, dental college, nursing colleges, hospitals and schools. The group has interests in other sectors such as fishing harbour, cement, milk, bottled water and iron and steel.
The Income Tax Department said there were reports of the group accepting fee/donations in cash, which were largely unaccounted for, and of the funds of the trust being diverted to other sister concerns.
Suppression of receipts
During the search proceedings, evidence of suppression of fee receipts have been found, it said.
In addition, the Department said one group entity has adopted the modus operandi of showing the actual fees received as advance fee collection in the liability side of the balance sheet and advancing the said amounts as payments to its sister concerns against certain expenses/purchases, which were found to be bogus/inflated.
The I-T Department noted that thus the money of the trusts is found to be diverted outside the trusts for the objects outside the scope of the trust. Evidence has been found — unexplained cash debits, unrecorded cash expenditure, suppression of sale receipts in fishing harbour, loan advanced in cash, non-disclosure of property, etc., it said.
The search proceedings have been temporarily concluded and investigations into the findings are in progress, Income Tax Department said.
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