“The searches conducted so far have revealed undisclosed income of more than Rs 300 crore and unaccounted cash worth Rs 9 crore has been seized,” the Central Board of Direct Taxes (CBDT) said in a statement.
It said that evidence found at the premises of the financiers and their associates has shown that these groups have lent to various large corporate houses and businesses in Tamil Nadu, a large part of which is in cash.
The department found that the groups are “charging higher interest rates, a part of which is not offered to tax”.
The policy-making body for the tax department said, “The modalities adopted by the clusters have 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 CBDT alleged that “unaccounted money” is brought into the books of accounts of groups in the form of unsecured loans, sundry creditors etc.
It said several undisclosed asset investments by these individuals and shortfall in other income were also found.