The Hindu : Tamil Nadu / Chennai News : Rs.1-crore tax evasion detected

Online edition of India's National Newspaper
Wednesday, Sep 28, 2005

Tamil Nadu

Tamil Nadu - Chennai

Rs.1-crore tax evasion detected

T.S. Shankar

Fixed deposits under "fictitious" names Fifty fixed deposit receipts of Rs.50, 000 each seized, "incriminating documents" recovered, during survey

CHENNAI: Income Tax (Investigation) wings in Tiruchi and Chennai, in a coordinated action, have detected Rs.1-crore tax evasion by seizing equity linked fixed deposits made under "fictitious names" from a non-banking company in Kumbakonam.

According to official sources, acting on intelligence gathered by the Tiruchi wing, searches were carried out in four branches of a mutual benefit fund in Chennai and its main office in Kumbakonam. Sources told The Hindu that the Kumbakonam Mutual Benefit Fund's equity linked fixed deposit scheme was being used to mobilise capital. The survey revealed deposits under "fictitious names." From one "depositor," 50 fixed deposit receipts of Rs.50, 000 each were seized.

Apart from the deposit receipts, "incriminating documents" were recovered during the survey.

Meanwhile, the department is continuing its investigations into the Rs. 21 crore seized from three private Banks in Erode.

It is examining the seized documents and confession statements of the "depositors." Meanwhile, the sources said action against doctors in Madurai had yielded positive results.

The department has seized nearly Rs. 5 crores in cash and fixed deposits from five doctors.

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