Raids at the Chettinad group of companies continued for the second day on Thursday with more agencies joining the Income Tax department in the searches.
On the second day of the raids, central excise and sales tax officials also turned up at the offices of the group in Tamil Nadu, Andhra Pradesh and Mumbai.
Sources said the company is under investigation for money laundering, foreign exchange violations, central excise tax, sales tax and income tax issues.
Though officials sources deny any connection, the raids are believed to be a direct fallout of the ongoing feud between Chettinad group chairman MAM Ramaswamy and his adopted son, MAMR Muthiah (S Ayyappan).
Ramaswamy has enlisted the support of industrialist and former BCCI official AC Muthiah against his adopted son, who he alleged had diverted a substantial part of family properties to his name.
Both the industrialists belong to the same business community hailing from southern Tamil Nadu. Interestingly, Ramaswamy and Muthiah, who are related to each other, were not considered close till now.
AC Muthiah will take care of the two trusts that Ramaswamy had formed to run the Chettinad House and its philanthropic activities in the education and healthcare sectors.
The feud in one of southern India’s leading business families turned acrimonious on Monday with Ramaswamy filing a criminal case against S Ayyappan and his associates, charging them with assault and attempt to murder.
The complaint was made on May 24 but the FIR was registered on June 8 with the Foreshore Estate police station under which the Chettinad Palace falls. The FIR was against MAMR Muthiah (S Ayyappan) and 40 others, for assaulting Ramaswamy's workers at the palace a fortnight ago, a police official confirmed.
On Tuesday, Ramaswamy disowned his adopted son at a press conference and alleged that Ayyappan had entered the palace on May 23 as a trespasser and attacked his workers
“Complaints lodged by me with the police control room's helpline number, and with the Pattinapakkam police station did not yield any response. Instead the police registered a false complaint against my workers and were harassing them," the octogenarian industrialist alleged.