I-T recovers Rs 11.50 crore in raids at premises of MNM Treasurer

The recovery comes as no surprise as political observers and poll watchers say the 2021 assembly elections will be the “most expensive election” in TN's history

The Income Tax Department has recovered Rs 11.50 crore in cash and detected unaccounted income to the tune of Rs 80 crore during searches at the premises belonging to a Tiruppur-based businessman, who is also treasurer of actor Kamal Haasan's Makkal Needhi Maiam (MNM)

Sleuths from the Income Tax department conducted searches at premises belonging to A Chandrasekaran, who is a leading businessman in Tiruppur, on Wednesday and Thursday. Searches were conducted in Tiruppur, Dharapuram, Chennai and five other locations.

I-T officials said the searches conducted at the offices of Chandrasekaran revealed that the firm he owns is engaged in the practice of suppressing profit by inflating purchases and other expenses. The unaccounted income generated is utilized for making investments in land and expansion of business, the officials added.

Read | Cash, freebies worth Rs 331 crore seized in poll-bound states, UT

“The search resulted in seizure of unaccounted cash of Rs 11.50 crore and total unaccounted income detected so far is Rs 80 crore. Further investigations are in progress,” the I-T Department said on Friday.

The seizure of cash and detection of unaccounted income from firms belonging to its treasurer has come as a major embarrassment for MNM, which has made corruption its main plank for the April 6 assembly elections.

Responding to the raids, Kamal Haasan said it was an “intimidation tactic” as his party was an “honest one.”

The I-T also seized Rs 5.32 crore during the course of election surveillance being carried out for the April 6 assembly elections in Tamil Nadu and Puducherry. It said seizure of large unaccounted cash will reduce the possibility of its utilisation for electoral purposes and will aid the objective of free and fair poll in Tamil Nadu.

The development comes two days after enforcement agencies seized unaccounted cash and materials, including gift items, worth Rs 127 crore in Tamil Nadu just 20 days after the Model Code of Conduct came into force on February 26.

Cash to the tune of Rs 50.86 crore, liquor worth Rs 1.32 crore, “freebies” with the value of 14.06 crore, and “precious metals” worth Rs 61.04 crore were seized in Tamil Nadu alone till Match 16. The total worth of the seized or recovered items is Rs 127.64 crore.

The recovery comes as no surprise as political observers and poll watchers say the 2021 assembly elections will be the “most expensive election” in Tamil Nadu's history. The state has had a chequered history on illegal spending by political parties and candidates – it also has the ignominy of witnessing elections being rescinded for rampant use of money power to buy votes.