New Delhi, Jan 10 (PTI) The Income Tax Department today conducted country-wide searches at over 100 stores and other premises belonging to two major south-India based jewellery chains on charges of alleged tax evasion, official sources said.

The action is being carried out against Kerala-based jewellery group Joyalukkas and another firm connected with it.

I-T sleuths are raiding 130 premises of the business houses in the cities of Chennai, Hyderabad, Thrissur and other locations in Kerala, Karnataka, Andhra Pradesh, Telangana, Gujarat, Maharashtra, Delhi and West Bengal, I-T sources said.

The action, they said, is aimed at checking alleged tax evasion following demonetisation in the two firms. Tax sleuths detected huge cash deposits and sale figures of gold, diamond and jewellery in their accounts.

The Chennai wing of the department is coordinating the nation-wide action, involving over 100 tax sleuths and a number of police teams, sources said.

Tax searches target jewellery chains over alleged post-demonetisation tax evasion, probing undisclosed cash and sales records. Searches were carried out at numerous premises of two south India-based jewellery groups on allegations of tax evasion after demonetisation, focusing on substantial cash deposits and reported sales of gold, diamond and jewellery; the Chennai wing coordinated multi-state searches by tax investigators with police assistance to gather records and evidence for verification of transactional and accounting disclosures.