₹300 crore black money detected from 2 Tamil Nadu financing groups: CBDT

The income tax department has detected “unaccounted” income of over ₹300 crore after it raided two private syndicate financing groups in Chennai, the Central Board of Direct Taxes (CBDT) said on Saturday

The income tax department has detected “unaccounted” income of over ₹300 crore after it raided two private syndicate financing groups in Chennai, the Central Board of Direct Taxes (CBDT) said on Saturday.

The CBDT department detected that the financing groups “are charging high rate of interest, a part of which is not offered to tax.” (PTI)

The searches were carried out on September 23 on 35 premises in Chennai.

“The searches, so far, have resulted in the detection of undisclosed income of more than ₹300 crore and unaccounted cash of ₹9 crore has been seized,” CBDT said in a statement.

The evidence found on the premises of the financiers and their associates revealed that these groups have lent to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which is in cash, the statement said.

The department detected that the groups “are charging high rate of interest, a part of which is not offered to tax.”

“The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes,” the policy-making body for the tax department said.

The “unaccounted monies” are disguised and brought into the books of account of the groups as unsecured loans, sundry creditors, etc., the CBDT claimed.

Numerous undisclosed property investments and other income suppression by these persons were also found, it said.