I-T: Retail chain rigged software to hide income
The residence of Yogarathinam Pondurai, son of the founder of Saravana Stores, was also searched.
Chennai: Income-tax officials who had raided Saravana Stores in Chennai and Coimbatore said on Thursday that undisclosed income of at least Rs 400 crore has been found.
The I-T department, after raids on January 29 and subsequent days on the retail chain, found unaccounted money to the tune of Rs. 25 crores while 12 kilograms of gold were also recovered from various locations. Textile and jewellery showrooms were the focus in the Saravana Stores raid, but officials also searched properties associated with Lotus group and G Square, who are into realty business. The residence of Yogarathinam Pondurai, son of the founder of Saravana Stores, was also searched. He reportedly has interests in real estate and other businesses too.
An 800-member team visited offices and houses related to the business group and went through books of accounts and other documents, looking for any illegal or benami deals. "The account keeping software in the stores was rigged. A private company developed the software wherein only half of the income would be accounted for. If an entry of 2 crores was entered, only 1 crore would be accounted for," a source from the I-T department said.
Earlier in January, popular eateries like Saravana Bhavan and Grand Sweets & Snacks were raided after claims of tax evasions surfaced. Officials said the homes and offices of directors of the food chains were being raided by a team of over 100 I-T sleuths.