TN-based educational group admits to having Rs 532 cr of undisclosed income

One of the leading educational institution groups in Tamil Nadu has admitted to having Rs 532 crore of undisclosed income, the tax department said. The officials have seized approximately Rs 2 crore of unaccounted cash.

"The income tax department has mounted search on a group operating leading educational institutions having a large number of schools and colleges in Chennai and Madurai region. The search was conducted at the office of the Trust, residences of the trustees and key employees of the group. The charitable trusts are running a medical college and hospital, engineering colleges and schools across Tamil Nadu. Search and survey operations were carried out at 64 places across the State," according to a statement issued by the department.

During the search, evidences were unearthed for fee collected under various nomenclatures from students of engineering colleges, schools run by the group, which were received in cash and not accounted for, and cash receipts not accounted for in the hospital account. Loans and interest were repaid in cash and these receipts were utilised for the purchase of properties by paying on-money. The searches are temporarily concluded while further investigations are under progress, it added.