Officials of the Income Tax Department seized 30 crore while raiding the main school of a Namakkal-based educational group. They estimate that the groups undisclosed income could be more than 150 crore.
Officials from Income Tax Department have been conducting raids since Friday at a school run by the group, which operates educational institutions and coaching institutes for competitive exams like NEET. Without naming the group, the release from Central Board of Direct Taxes, Ministry of Finance, said it comprises several partnership firms and a trust controlled by a closely knit group of individuals.
The searches covered 17 places, including the residences of the group promoters at Namakkal, Perundurai, Karur and Chennai.
The raids were conducted on the basis of intelligence that the group was evading tax by suppression of fee receipts from students. The modus operandi was to receive part of the fees in cash and such cash receipts were not entered in regular books of accounts.
During the raids, the officials seized 30 crore from a safe inside an auditorium on the campus. The institution had hired highly-paid faculty at its coaching institutes and they were paid out of the books. The raids would continue, the release added.