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Poll corruption? Several crores in cash seized in raids in TN, Puducherry

IT Department seized "unaccounted" cash of over Rs 16 crore in Tamil Nadu

cash representational Representational image

The Income Tax Department has seized "unaccounted" cash of over Rs 16 crore and detected black income of about Rs 80 crore after it raided multiple entities in poll-bound Tamil Nadu, the CBDT said on Friday.

It said the action was part of election surveillance being carried out by the department for the ensuing Assembly elections in Tamil Nadu and Puducherry.

The searches were carried out on March 16 and 17 in Chennai, Tiruppur and Dharapuram.

"Five premises belong to five entities, who, in addition to their regular business, are also acting as cash handlers. The action resulted in a cash seizure of Rs 5.32 crore," the board said in a statement.

The Central Board of Direct Taxes (CBDT) frames policy for the tax department.

In another case, searches were carried out against a business group engaged in yarn trading and supply of PPE kits, bags and baby care kits to various state governments.

It was found, the statement alleged, that the group is engaged in the practice of "suppressing" profit by inflating purchases and other expenses.

"The unaccounted income so generated is utilised for making investments in land and expansion of business," the statement said.

"The search has resulted in seizure of unaccounted cash of Rs 11.50 crore and total unaccounted income detected so far is Rs 80 crore," it said.

Polls to the 234-seat Tamil Nadu Assembly will be held in a single phase on April 6.

"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 the state of Tamil Nadu," the statement said.

"Income Tax Department has stepped up its monitoring and is closely watching the cash movement during the ensuing Assembly elections," it added.

Rs 2 crore in Puducherry

Election flying squad officials seized Rs 2 crore cash being transported in a vehicle while set-top boxes worth about Rs 2 crore were recovered from a house in poll-bound Puducherry.

Officials of the flying squad of Kadirkamam, Thattanchavady and Indira Nagar Assembly segments in the Puducherry region on Thursday intercepted a vehicle in Thanthai Periyar Nagar during a surprise check and seized the cash being transported in it.

Puducherry Chief Electoral Officer (CEO) Shurbir Singh said in a release that though the people carrying the cash in the vehicle disclosed during inquiry that it was from a bank, they could not present valid documents to show the destination it was being taken to.

He said suspicion arose that the cash was intended for "illegal distribution to the voters while the Model Code of Conduct for Assembly polls is in force”.

Shurbir Singh said the cash was in the denominations of Rs 500, Rs 200 and Rs 100, adding the vehicle in which it was being transported was a private van normally used by banks.

He said that the cash was handed over to the Income Tax Department for further investigation.

The CEO also said in another instance, the flying squad of Embalam, Nettapakkam and Bahoor segments in Puducherry region acted on a tip-off and seized around 30,000 set-top boxes worth about Rs two crores from a house.

Also, over 3,600 litres of arrack kept in the backyard of an arrack shop in Karaikal were seized, taking the total quantity seized so far to 18,500 litres.

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