Income Tax raids on Chettinad groups

Chennai: Officials from the Income Tax department conducted simultaneous raids in offices of the Chettinad group of companies, hospitals, school and residences at 39 locations across Tamil Nadu, Andhra Pradesh, Mumbai, Haridwar and Hyderabad. The sleuths also raided the Chettinad Palace, the official residence of the former chairman of the group, Mr M.A.M.Ramaswamy.

The raids were on till late into Wednesday night. They come a day after educationist, industrialist and philanthropist Ramaswamy, formally disowned his foster son M.A.M.R. Muthiah, who is now the group's MD. In the course of the press conference, Mr Ramaswamy had revealed that Chettinad Cements may not have paid a certain quantum of sales tax due to the government. Income-Tax department sources, however, said that the raids had nothing to do with the family feud.

According to Veda Bhagat Singh, legal adviser to the Chettinad group, the raids started at all offices of Chettinad Healthcity, Chettinad Cements and Chettinad Palace and a few other residential placesof the company's top executives at around 9am.“We are not sure what are they looking for," he said adding that the company is not in violation of any laws.

The raids took place at offices, including the group headquarters at Rani Seethai Hall near the Gemini flyover. Police were posted outside the offices to facilitate smooth conduct of raids, but it was a normal working day at Rani Seethai Hall, which houses the group’s headquarters and a few other firms. “The raids are going on in different places and are likely to go on till midnight and we cannot disclose any further details. Some quantity of cash has been seized from one of the group’s trusts,” sources said.