Velammal group evaded Rs 532 crore worth tax: Income Tax Department

City-based Velammal Group of Educational Institutions has admitted that it possesses undisclosed income to the tune of Rs 532 crore, the Income Tax Department said on Friday. The statement comes after the I-T department mounted a massive raid at 64 premises belonging to the group in Chennai and Madurai earlier this week.

Though the I-T department did not mention the name, officials said it was the Velammal Trust that has evaded tax. The charitable trust runs a medical college and hospital in Madurai, engineering colleges and several schools across Tamil Nadu.

During the search, proof of fee collected under various nomenclatures from students of engineering colleges and schools run by the group were unearthed. These were received in cash which was not accounted for as well as the cash receipts, in the hospital account.

“Loans and interest were seen repaid in cash which were earlier taken in cash for the purpose of unaccounted investments. These receipts were utilised for the purchase of properties by paying on-money,” Surabhi Ahluwalia, Commissioner of Income Tax (Media & Technical Policy), said in an official statement.

The statement said Rs 2 crore in cash was seized during the searches. “Out of the unaccounted income detected so far, the group has admitted an amount of Rs. 532 crores as their undisclosed income,” the statement said, adding that searches have been “temporarily concluded” and the investigation is under progress.