Tamil Nadu: I-T dept seizes Rs 4.2 crore unaccounted cash

Tamil Nadu: I-T dept seizes Rs 4.2 crore unaccounted cash

TNN | Sep 2, 2020, 04.38 AM IST

COIMBATORE: A land transaction has landed two people in trouble after the investigation wing of the income tax department seized Rs 4.2 crore that the buyer paid the land seller over and above the guidance value at which the property was registered.

Registration department sources said a resident of Gobichettipalayam in Erode district had sold two acres of land to businessman Somasundaram, of Sri Nagar in the same locality.

Somasundaram is engaged in fertilizer sales and owns a company named Royal Fertilizer Corporation at Gobichettipalayam.

The land registration was done on Monday and they showed that the land was sold at Rs 80 lakh, which was its guideline value.

The sources said as per the market value, the land was worth Rs 5 crore. “The buyer had paid the seller Rs 4.2 crore in cash before registration. The seller kept the amount at his residence with a plan to distribute the same among 12 people.”

Meanwhile, I-T investigation wing officials in Coimbatore and Erode got a tip about the deal and conducted a surprise search at the house of the land seller and seized the cash on Monday night. The officials also conducted a raid at Somasundaram’s house and office.

“The cash is unaccounted. We have asked them to appear before the investigation officer of income tax department in Erode for further investigation," the source said.

The source said the income tax department would collect 30% tax on the unaccounted money and another 30% as penalty. The land buyer has to answer for the unaccounted money before the IT department sleuths.