The Income Tax Department mounted a search on a group operating leading educational institutions having a large number of schools and colleges in Chennai and Madurai region. The search was conducted at the office of the Trust, residences of the trustees and key employees of the group. The charitable trusts are running a medical college and hospital, Engineering colleges and schools across Tamil Nadu. Search and survey operations were carried out at 64 places across the State.

During the search, evidences were unearthed of fee collected under various nomenclatures from students of Engineering colleges; schools run by the group which were received in cash and not accounted for; and cash receipts not accounted for 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.

The search has resulted in the seizure of around ₹ 2 crore of unaccounted cash. Out of the unaccounted income detected so far, the group has admitted an amount of ₹ 532 crore as their undisclosed income. The searches are temporarily concluded and further investigations are under progress. 

Search and seizure operations uncover large-scale unaccounted income in educational trust, triggering criminal tax investigation. Income-tax search and seizure at 64 locations of a charitable educational group uncovered cash fees and receipts not recorded, cash repayments of loans and use of unaccounted receipts to purchase property by paying on-money; seizure of unaccounted cash was made and the group admitted a large sum as undisclosed income, with further investigations ongoing.