The Income Tax department has conducted searches on two Chennai-based groups, one of which is a leading bullion trader in Tamil Nadu and the other is one of the biggest jewellery retailers in South India.
The raids took place in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Trissur, Nellore, Jaipur, and Indore, among other cities on March 4. So far, the searches have uncovered hidden profits totalling more than Rs 1,000 crore. Also, Rs 1.2 crore in unaccounted cash has been confiscated.
On April 6, Tamil Nadu will hold a single phase of elections for its 234-member assembly.
Unaccounted cash sales, fake cash credits from its subsidiaries, cash credits in dummy accounts in the guise of advance for transactions, unexplained cash deposits during the demonetization era, bogus unpaid sundry creditors, and massive unexplained stock variations were all discovered in the bullion trader's premises.
The proof discovered in the jewellery retailer's premises showed the following things:
The taxpayer had collected and repaid cash loans from local financiers.
Had provided cash loans to builders and made cash investments in real estate properties.
Had made unaccounted gold bullion purchases; had alleged wrongful bad debts
Had inflated wastages in the conversion of old gold to fine gold and jewellery making, among other things.